When Kemi Badenoch, Leader of the Conservative Party closed the Conservative Party ConferenceManchester on October 8, 2025, the hall erupted at her promise to abolish stamp duty on primary homes in England. The pledge, framed as a “£9 billion tax giveaway,” landed in a packed Manchester Central Convention Complex at 8:00 PM UTC and instantly became the night’s headline.
Why the Policy Matters Now
Housing affordability has been a ticking time‑bomb for years. Recent surveys show that 73 % of first‑time buyers say they can’t save enough for a deposit, and mortgage approvals have slipped 12 % since last spring. Badenoch’s bold move seeks to cut that barrier in half by wiping out the transaction tax that often adds tens of thousands of pounds to a purchase price.
She argued, “Stamp duty is an un‑conservative tax. A society where no one can afford to buy or move is a society where social mobility is dead.” The logic is simple: remove the cost, boost demand, and let a stagnant market finally breathe.
Details of the Proposed Abolition
The plan would apply solely to England, respecting the devolved powers of Scotland and Wales over property taxes. In Scotland, the Land and Conveyancing Tax would remain untouched; in Wales, the Land Transaction Tax would continue as is.
- Effective date: First fiscal year after a Conservative victory in the next general election (due by 28 January 2029).
- Scope: All primary‑residence purchases, regardless of price band.
- Fiscal impact: Approximate revenue loss of £9 billion per year, based on Channel 4 News’ analysis of current stamp‑duty receipts.
The Conservative leadership team said the loss would be offset by a “golden rule” fiscal framework – half of any savings from spending cuts go straight to deficit reduction, the other half funds new priorities.
Reactions from the Floor and Beyond
Eyewitness accounts from conference delegates describe a wave of applause that lasted several minutes. “It went down very well,” said one longtime party member, who asked to remain anonymous.
However, not everyone is convinced. A spokesperson for the Institute for Government cautioned that “projected savings to fund the giveaway are uncertain, and the broader fiscal package will need rigorous scrutiny.”
Channel 4 News added, “While the headline number sounds generous, critics argue the policy could widen regional disparities, especially given housing shortages in the North.”
Broader Economic Context
Britain’s housing market has seen price growth outpace wage increases for over a decade. In the last twelve months, average home prices rose 6 % while median earnings grew just 2 %. The Chancellor’s Office has already hinted at possible further reforms to the “Help to Buy” scheme, and Badenoch’s stamp‑duty axe could dovetail with those changes.
Moreover, the timing is crucial. Polling from BBC News shows the Conservative brand has slipped 8 points since the start of 2025, making bold policy promises a strategic gamble ahead of a potentially bruising election campaign.
What’s Next for the Proposal?
After the conference, the policy will be drafted into a white paper for the party’s policy council. If the Conservatives win the next election, the legislation would need to pass both Houses of Parliament – a process that could take up to 12 months.
Opposition parties have already signaled resistance. Labour’s shadow chancellor warned that “a £9 billion giveaway will widen the deficit at a time when we need fiscal prudence,” while the Liberal Democrats called for a “targeted relief” focused on first‑time buyers rather than a blanket abolition.
Historical Perspective: Stamp Duty’s Evolution
Stamp duty was introduced in its modern form, the Stamp Duty Land Tax (SDLT), in 2003 under the Labour government. It has undergone several tweaks: the 2010 “stamp‑duty holiday” that briefly halted the tax, the 2021 thresholds hike that raised the top band, and the 2023 “first‑time buyer relief” that lowered rates for purchases under £425,000.
Badenoch’s pledge marks the first full‑scale removal of SDLT from primary homes, a move that mirrors the 2015 “stamp‑duty cuts” under a previous Conservative administration but goes far beyond a marginal rate adjustment.
Implications for Homebuyers and the Market
For prospective owners, the immediate benefit is clear: no additional tax at closing. In practical terms, a £300,000 home would see a saving of about £7,500 under current rates – a sum that could cover solicitor fees or a portion of a deposit.
Economists predict a short‑term surge in transaction volumes as buyers rush to lock in deals before any potential policy reversal. In the longer run, the removal could stimulate construction activity, though skeptics warn that without complementary supply‑side measures, price inflation could simply absorb the tax relief.
Key Facts
- Who: Kemi Badenoch, Leader of the Conservative Party
- What: Proposal to abolish stamp duty on primary residences in England
- When: Announced 8 October 2025; slated for implementation after the next general election (by 2029)
- Where: Manchester, United Kingdom
- Why: To boost housing affordability and stimulate the property market
Frequently Asked Questions
How will the stamp‑duty abolition affect first‑time buyers?
First‑time buyers would save the full amount of the current SDLT charge, which can be up to £7,500 on a £300,000 property. That money could be redirected toward a larger deposit, reduced mortgage size, or covering moving costs, making homeownership more attainable.
What impact could the policy have on the national budget?
The Institute for Government estimates a revenue loss of about £9 billion annually. The Conservative plan relies on a “golden rule” fiscal approach to offset part of the shortfall, but critics say the overall deficit could rise unless spending cuts or alternative revenues are identified.
Will Scotland or Wales see similar reforms?
No. Badenoch explicitly said the proposal applies only to England because property transaction taxes are devolved matters. Any similar move would require agreement from the Scottish Parliament or the Senedd, which have not signaled interest yet.
What are the main arguments against the abolition?
Opponents argue the loss of revenue could widen the fiscal deficit and that a blanket tax cut may simply inflate house prices, especially in high‑demand areas, without increasing actual supply. They also worry about regional inequality, as areas with already high price growth could see the biggest price spikes.
When could we expect the policy to be enacted?
If the Conservatives win the next general election, a white paper will be drafted within months, followed by parliamentary debate. Assuming a smooth legislative process, the abolition could take effect in the first full fiscal year after the new government is seated, likely 2029‑2030.