At the Conservative Party conference, Badenoch said: “We Conservatives believe that owning your own home gives you a real stake in society, roots in your community, but our housing market is not working as it should.
“There is a big barrier that keeps getting in the way. And that barrier is the tax you have to pay when you buy your home.”
She said it was a “bad tax” and an “un-Conservative tax” that hindered social mobility.
Badenoch said she had looked at changing stamp duty thresholds or rates but said this “would not be enough”, so the Conservatives would scrap stamp duty if they win the next election, which would benefit people of all ages.
The announcement was greeted by a standing ovation by attendees of the party conference.
One Year On: Helping You Add Value with Halifax’s Green Living Reward
Sponsored by Halifax Intermediaries
Currently, stamp duty rates for a single property are 2% for properties priced at £125,001-250,000, 5% for £250,001-925,000, 10% for £925,001-1.5m and 12% above £1.5m.
First-time buyers don’t have to pay stamp duty for properties up to £300,000 and have to pay 5% on homes at £300,001-500,000. If the property is over £500,000, then a different calculation takes place.
Figures from HMRC show that annual receipts for stamp duty came to £18.4bn in 2024-25. This includes annual tax on enveloped dwellings.
Stamp duty is ‘major barrier’ to homeownership
Paula Higgins, HomeOwners Alliance’s chief executive, said: “We strongly support the Conservative Party leader’s call to abolish stamp duty. We’ve long campaigned to scrap stamp duty for people buying a home to live in. Kemi Badenoch is right: it’s a tax that traps households, hampers mobility and suppresses market activity.
“Homeownership is the foundation of a fairer and more secure society – but stamp duty has denied that opportunity to too many for too long. Our research shows over 800,000 homeowners have shelved moving plans in the past two years, and stamp duty is a major barrier. By scrapping it, we don’t just help first-time buyers: we unlock supply, free up stock, stimulate related trades and get the housing market moving. This will be a real vote winner.”
Tom Clougherty, executive director of the Institute of Economic Affairs, said: “Abolishing stamp duty is the single best reform any government could make to Britain’s tax system. As things stand, this outdated and uneconomic levy is wreaking havoc on our already troubled housing market – by deterring sales and depressing housebuilding.
“Indeed, research suggests that the wider social and economic harms are equivalent to three-quarters of the revenue raised – and that’s on top of the loss to the people actually paying the tax. This means that stamp duty is many times more damaging, as a source of revenue, than broad-based taxes on income and consumption. Any proposal to permanently cut or abolish it is therefore extremely welcome.”
