Estate Agents Say Stamp Duty Is the “Biggest Barrier to Homeownership”
A growing number of estate agents are calling for Stamp Duty Land Tax (SDLT) to be abolished, arguing it has become one of the biggest obstacles to homeownership in the UK.
A recent survey by GetAgent found that nearly eight in ten agents (79%) want stamp duty scrapped entirely without any replacement tax. At the same time, almost half (44%) said if a replacement were needed, it should apply only to high-value homes, typically those priced over £500,000.
By contrast, just 10% of agents believe SDLT should remain as it is.
Would Scrapping SDLT Unlock Demand?
Supporters of reform believe so. In the same survey, an overwhelming 92% of agents said removing the upfront burden would encourage more buyers to enter the market. Almost half (47%) felt the boost to demand would be “significant.”
Colby Short, co-founder of GetAgent, put it bluntly:
“Stamp Duty has long been one of the biggest barriers to homeownership. Removing upfront costs for buyers would undoubtedly stimulate demand.”
The Seller Levy Debate
One option often floated is a seller-side levy, shifting the tax burden from buyers to those selling their home.
- 66% of agents said they would support this approach.
- Only 13% oppose it outright.
- But 96% warned that many sellers would simply hike asking prices to cover the extra cost.
A Property Reporter poll echoed these findings: while agents see appeal in a seller levy, many admit it could create distortions if not carefully designed.
Homeowners Push Back
Yet while agents may welcome reform, homeowners are far less enthusiastic about alternative taxes.
According to research from Boon Brokers (reported by Financial Reporter), a staggering 96% of homeowners are anxious about the idea of a new property tax – particularly an annual levy on home values.
- 75% fear that retirees and working homeowners would be hardest hit.
- 51% said they would be less likely to buy if such a tax were introduced.
- Many called it “double taxation,” since they had already paid SDLT at purchase.
This highlights a growing divide: agents see SDLT as a block on transactions, but homeowners fear reforms could backfire by adding new long-term costs.
Thresholds and Regional Impact
When asked about thresholds, nearly half (49%) of agents said a £500,000 cut-off point for any replacement tax was “about right.” In practice, this would shield the majority of homes outside London and the South East, while still capturing revenue from higher-value transactions.
Analysts warn this could create winners and losers by region: buyers in northern England, Wales and Scotland might benefit most, while Londoners could face continued high costs under any new levy.
What Happens Next?
For now, the government is considering its options, with Chancellor Rachel Reeves weighing a range of proposals ahead of the Autumn Budget. These include staggered SDLT payments, a seller levy, or even a proportional property tax tied to home values.
But as one agent commented privately: “The market doesn’t need more speculation – it needs clarity. Until buyers know where they stand, many will sit tight.”
Bottom line: Most estate agents agree stamp duty is holding back the market and want it gone. But with homeowners overwhelmingly opposed to new property taxes, the political challenge is finding a reform that boosts mobility without alienating voters.
