Date Published 10 October 2025
The Conservative Party has confirmed that stamp duty will continue to apply to buy-to-let and additional property purchases, even as it pledges to abolish the tax on primary residences. Party leader Kemi Badenoch described stamp duty as 'a bad tax' during her speech closing the party's annual conference in Manchester. However, shortly after her address, a press release from the party clarified that the proposed abolition would apply only to primary homes—regardless of their value—and not to second homes, company purchases, or properties bought by non-UK residents.
The statement also noted that, because property taxation is devolved, the policy would apply solely to England and Northern Ireland, with Scotland and Wales maintaining their separate regimes. The announcement has been largely welcomed by estate agents and property professionals. However, some have cautioned that the proposal could have unintended short-term consequences for the housing market.
Tom Bill, Head of UK Residential Research at Knight Frank, warned that while the move would 'have an immediate impact,' it might also stall activity if the Conservatives lead the polls ahead of the next general election. 'Buyers and sellers could delay transactions, waiting for the tax to be scrapped before making their move,' he said. Similarly, Lucian Cook, Head of Residential Research at Savills, noted that the actual market impact would depend on whether the abolition is offset by other fiscal measures. 'If, and it's a big if, this is a simple tax giveaway, the likely result is that stamp duty savings would feed directly into higher house prices,' he explained. 'That could mean an average price uplift of around 2.8%—or roughly £9,700. However, the effects would vary significantly across different regions and price brackets.'
Cook added that while the policy could increase overall market activity, particularly among mortgaged buyers and downsizers, it would likely have minimal impact on first-time buyers, who already benefit from existing reliefs.
As your trusted agent—whether you're buying, selling, or investing—we'll continue to monitor these developments closely and keep you updated on any forthcoming changes to stamp duty or related property taxes.
