Property Experts Urge Chancellor Rachel Reeves to Abolish Stamp Duty and Implement Annual Property Tax
Property experts, including Kirstie Allsopp, have called on Chancellor Rachel Reeves to abolish stamp duty in the upcoming 26 November 2025 budget and replace it with an annual property tax targeting high-value homes.
Allsopp described stamp duty as a "sin tax" that punishes buyers of higher-priced properties and emphasized that moving house should be encouraged rather than taxed. She warned that removing stamp duty without a replacement would likely lead to an increase in house prices, particularly in London.
The Treasury is reportedly considering an overhaul of both stamp duty and council tax, including the introduction of an annual property tax on homes valued above £500,000 and a mansion tax on the most expensive properties.
Tim Leunig proposed implementing an annual property tax of 0.54% on homes valued above £500,000 with higher rates for properties exceeding £1 million, arguing such a wealth tax is preferable to taxing only one form of wealth.
According to Zoopla's Richard Donnell, about 40% of first-time buyers currently pay stamp duty (rising to nearly 80% in London), with an average bill around £16,000, approximately 3% of the property value.
Market data indicates uncertainty ahead of the budget. Taylor Wimpey reported a decline in autumn sales, and Royal Institution of Chartered Surveyors (RICS) data for October showed signs of a cooling housing market with reductions in buyer demand, sales activity, and new property listings.
