Rachel Reeves has been pressed by property experts, including television presenter Kirstie Allsopp, to eliminate the stamp duty, often referred to as a “sin tax,” in the upcoming budget. This tax applies to property transactions exceeding £125,000. Allsopp expressed concerns that potential changes to stamp duty have led to public anxiety, causing many to postpone purchasing decisions as they await the budget announcement on November 26.
During her testimony to the Treasury committee, Allsopp criticized the perception of property buying as a negative act, drawing parallels to taxes on cigarettes and alcohol. She highlighted the problematic nature of penalizing individuals for opting to purchase more expensive properties, which she argues could be beneficial for economic activity.
The Treasury is reportedly exploring significant reforms to stamp duty, including a potential new tax on homes valued over £500,000, and updates to capital gains tax relief for primary residences. Additionally, a so-called “mansion tax” on high-value properties is under consideration.
Amidst these discussions, Taylor Wimpey, one of the largest UK housebuilders, reported reduced sales attributed to the uncertainty surrounding the budget. Other experts, including Kate Willis from the Chartered Institute of Taxation, reiterated that while stamp duty generates revenue, it distorts economic behavior and may hinder home ownership.
Research director Richard Donnell from Zoopla noted that a considerable percentage of first-time buyers face stamp duty costs, which can average around £16,000, impacting their ability to purchase homes. Tim Leunig, an economist and former adviser, stated that stamp duty limits mobility in the workforce, potentially affecting overall economic activity, but warned that abolishing the tax might lead to rising property prices.
Leunig proposed an alternative—a yearly property tax on homes valued above £500,000—arguing for a more equitable approach to wealth taxation without disproportionately targeting property owners. Meanwhile, the Royal Institution of Chartered Surveyors has reported a decline in activity across the UK housing market, indicating a cooling trend.
Source: https://www.theguardian.com/money/2025/nov/12/property-experts-urge-rachel-reeves-to-abolish-sin-tax-of-stamp-duty-in-budget