The Conservative Party is actively promoting a proposal to abolish Stamp Duty Land Tax (SDLT) on primary homes in England. This is opposition party policy - Labour currently governs and existing SDLT rates remain fully in force. Shadow chancellor Sir Mel Stride has been leading the campaign, describing stamp duty as "the most economically damaging tax." Nothing has changed in law.
What exactly is the Conservative proposal?
The policy was first set out by party leader Kemi Badenoch at the Conservative conference in October 2025. Since then, Stride has taken it forward through media appearances and industry engagement. In a recent episode of Winkworth's Property Exchange podcast, reported by Property Industry Eye, Stride said: "Stamp duty damages aspiration and the economy. And this hits the majority of England. It's not just a London problem."
He argued the proposal would not be a cut for the wealthy. "Most people impacted by stamp duty don't live in London and most transactions are below £500,000," he said. Funding, he suggested, would come from reductions in the benefits bill, cutting the Civil Service to 2016 staffing levels, and reducing overseas aid.
Winkworth chief executive Dominic Agace, who hosted Stride at the agency's Pimlico office in March, backed the argument with transaction data. He told the podcast that home moves have collapsed: 72,000 transactions last year compared with 140,000 "a few years ago." Agace attributed this partly to stamp duty: "It is devastating for the level of transactions and affecting all movement in the property market."
What does SDLT actually cost you right now?
SDLT applies in England and Northern Ireland. Scotland uses LBTT (Land and Buildings Transaction Tax) and Wales uses LTT (Land Transaction Tax) - different rates apply in both nations.
In England, the current rates on a standard residential purchase are:
Up to £125,000: 0%
£125,001 to £250,000: 2%
£250,001 to £925,000: 5%
£925,001 to £1.5m: 10%
Over £1.5m: 12%
For example, on a property worth £300,000, your liability as a standard buyer breaks down as: £0 on the first £125k, £2,500 on the £125k-£250k band, and £2,500 on the £250k-£300k slice - a total of £5,000. If that same property is a buy-to-let (BTL), the 3% surcharge on all bands adds £9,000, bringing total SDLT to £14,000. Use our free stamp duty calculator to check your own position.
The Conservative proposal, as currently framed, covers primary residences. Investors buying BTL properties would see no direct benefit under the plan. Speak to your accountant about your specific position - these figures are general guidance only.
Should investors change their strategy now?
No. This is a proposal from a party in opposition. Without a general election win and subsequent legislation, nothing changes. Current SDLT rates apply to every transaction you complete today.
Stride argued that "every property transaction drives economic activity - for plumbers, builders, retailers and all businesses connected with setting up home." That may be true. But investors pricing deals now need to budget against what the law says, not what a party proposes. Build SDLT into your numbers at current rates. If the policy changes, it will be a bonus, not a baseline.
For broader context on how taxation fits into your investment strategy, the structure of a purchase matters as much as the headline tax rate. See our tax and business structure guides for worked examples across different ownership structures. Our free resources hub also covers SDLT in detail.
Key takeaways
The Conservative proposal would abolish SDLT on primary homes - it is not law and Labour governs.
Current top standard rate is 12% on the portion over £1.5m; BTL buyers pay a 3% surcharge on all bands.
On a £300,000 primary purchase, current SDLT is £5,000; on a BTL at the same price, it is £14,000.
Transaction volumes have fallen from roughly 140,000 to 72,000 per year, according to Winkworth's Agace.
Investors should price deals using current rates - speak to your accountant before any purchase.
