Sir Mel Stride Makes the Case for Scrapping Stamp Duty at Propertymark One
Stamp Duty has long been one of the most debated taxes in British property. Critics argue it slows market movement, discourages downsizing, and acts as a hidden penalty on ambition. Now, Shadow Chancellor Sir Mel Stride has put the issue firmly back at the centre of the Conservative policy agenda, using a high-profile speech at the Propertymark One annual conference to argue that abolishing Stamp Duty entirely on primary residences could unlock a dramatic surge in housebuilding — potentially increasing output by as much as a quarter.
His comments have reignited one of the most consequential debates in UK property and housing policy. With a general election on the horizon and housing affordability remaining a critical concern for millions of households, the proposal carries significant political and economic weight. So what exactly is being proposed, why does Sir Mel Stride believe it could transform the housing market, and what would full Stamp Duty abolition actually mean for buyers, sellers, and the broader property industry?
What Sir Mel Stride Said at Propertymark One
Speaking at the Propertymark One annual conference, Sir Mel Stride outlined the Conservative vision for the property market in the next parliament. Central to that vision is the complete scrapping of Stamp Duty Land Tax (SDLT) on primary residences — not a temporary holiday, not a threshold adjustment, but a full and permanent abolition for those purchasing a home they intend to live in.
The Shadow Chancellor's headline claim was striking: removing Stamp Duty from primary residence purchases could boost housebuilding by around 25%. That figure will raise eyebrows, but the underlying logic connects a well-understood chain of events. When transaction costs fall, people move more freely. When people move more freely, a greater supply of existing homes enters the market. Developers respond to genuine demand signals. Land use becomes more efficient. And the overall system — from planning to construction to occupation — becomes more dynamic.
For the property industry, represented in force at the Propertymark One conference, this message landed at a pivotal moment. Estate agents, mortgage brokers, and housing professionals have watched transaction volumes stagnate in recent years under the combined pressure of rising interest rates, cost-of-living pressures, and the very tax being discussed. Sir Mel Stride's speech was, in many ways, exactly what the sector has been calling for.
Understanding the Problem with Stamp Duty
To appreciate why abolition is being proposed, it helps to understand why Stamp Duty is so widely criticised in the first place. Unlike income tax or VAT, Stamp Duty is a transactional tax — it only falls on people who move. That creates a perverse incentive structure in which staying put is financially rewarded, even when moving would be economically rational.
Consider the practical consequences:
- Older homeowners in large family homes are discouraged from downsizing because the Stamp Duty bill on their next purchase eats into their equity, making the move feel financially punishing rather than financially freeing.
- Young families who need more space are hit with a significant upfront cost at precisely the moment when their finances are most stretched, often on top of a deposit that has taken years to save.
- Workers who might otherwise relocate for new job opportunities are deterred by the cost of buying in a new area, reducing labour market flexibility and economic productivity.
- Landlords and investors face their own version of the tax through additional surcharge rates, which critics argue has reduced rental supply and pushed rents higher for tenants.
The cumulative effect is a market that moves too slowly, with too little stock circulating at any given time. That inefficiency is not just an inconvenience — it has measurable consequences for housing availability and price levels throughout the entire property chain.
The Housebuilding Connection
Sir Mel Stride's claim that abolition could boost housebuilding by 25% rests on understanding that new build demand is intimately connected to the fluidity of the second-hand market. When existing homeowners move freely, they create vacancies. Those vacancies absorb demand that might otherwise pile into the new build sector. Simultaneously, the confidence generated by a more active market encourages developers to break ground on new schemes, knowing that buyers will be in the market rather than locked in place by transaction cost anxiety.
It is also worth noting that a more fluid market sends cleaner price signals. Developers, planners, and local authorities can better gauge where housing demand is genuinely strongest — and direct supply accordingly. A sticky, high-friction market obscures those signals and leads to misallocation of building effort.
What This Could Mean for Buyers and the Property Industry
For first-time buyers, the immediate benefit of abolition is obvious: one of the most substantial upfront costs of homeownership disappears entirely. For those purchasing at the average UK house price, that could mean saving several thousand pounds — money that could go toward furnishings, renovation, or simply financial resilience in the early years of ownership.
For estate agents and property professionals, a more active market means more transactions, more instructions, and a business environment that is not perpetually held back by a tax that penalises the very activity the sector depends upon. The Propertymark One conference provided exactly the right platform for this message, bringing together the professionals who understand, more than most, how profoundly transaction taxes shape market behaviour.
Looking Ahead: A Policy With Real Stakes
Whether or not the Conservatives form the next government, Sir Mel Stride's speech has shifted the terms of the debate. The proposal to abolish Stamp Duty on primary residences is no longer a fringe idea floated by think tanks — it is now a named, defended policy position from a Shadow Chancellor, delivered to one of the most influential property industry audiences in the country.
For homeowners, buyers, and industry professionals alike, the question is no longer whether Stamp Duty reform is desirable. A broad consensus is emerging that the current system is a drag on the market, on housebuilding, and on economic mobility. The question now is which party will act — and how quickly. Sir Mel Stride has made clear where the Conservatives stand. The property industry, and millions of potential movers, will be watching closely.