The new Prime Minister’s swift decision to rule out abolishing Stamp Duty could help revive buyer activity following a month of political uncertainty, according to Adam Jennings, head of residential at Chestertons.
The number of prospective buyers registering across Chestertons’ London-wide network fell by 22% year-on-year to 1,740 in July – the steepest decline since November, when registrations dropped by 29% immediately ahead of the Budget.
Jennings said that the new Prime Minister’s immediate response to the Stamp Duty speculation should help restore buyer confidence. He commented: “The clarity provided so quickly into Andy Burnham’s tenure should, in theory, help people who are thinking of buying. The lesson from last year was that people don’t want to make a big decision in uncertain times when so much money is at stake. Inevitably, they are inclined to ‘wait and see’.
“By ruling out changes to Stamp Duty in the upcoming Budget, the Prime Minister has removed a significant question mark for buyers. Hopefully, that position remains in place for at least the next 12 months and gives the market the certainty it needs.”
Frozen Stamp Duty Land Tax thresholds constrict property market
The Government can’t deliver 1.5m new homes as Frozen Stamp Duty Land Tax (SDLT) thresholds are constricting the property markets growth, according to tax, accounting and business advisory firm Blick Rothenberg.
Mark Cunningham, a partner at the company, said: “The average UK house price has risen by around 28% over the past decade, but the SDLT bill on a purchase at the average property price has risen by more than 100%.
“As SDLT fiscal drag is making it more expensive for people to move and therefore constricting the market’s ability to grow, policymakers should ask whether the tax system is working against their own housing ambitions. A successful property and construction market requires both confidence and mobility to enable transactions.”
He added: “While there have been temporary SDLT holidays over the last decade, the underlying structure of the tax has remained largely unchanged. As house prices have risen, larger parts of residential transactions have been pulled into higher rates of tax.
“The average UK property price increased from approximately £211,230 in May 2016 to approximately £271,295 in May 2026, an increase of around 28.4%. Over the same period, SDLT payable on a purchase at the average property price increased from £1,725 to £3,565, an increase of 106.7%.
“If SDLT thresholds had increased in line with average house price growth since 2016 they would look very different today. The nil rate threshold would be approximately £160,500 rather than £125,000. The £250,000 threshold would sit just above £321,000 and the £925,000 threshold would move to almost £1.2m.
“(This) becomes increasingly significant as prices rise. A purchaser of a £1m property is paying almost £6,600 more SDLT than would be the case if thresholds had simply moved in line with average house prices. At £2m, the difference exceeds £24,500.”
Cunningham concluded: “The direction of travel is difficult to ignore. A tax on movement has become more expensive and the market is not transacting at higher volumes.”
Calls for immediate stamp duty cut to boost demand
Housebuilder Bellway has called for an immediate reduction in stamp duty and a government-backed deposit scheme for first-time buyers after warning of softer customer demand. The appeal came in the housebuilder’s trading update on 11 August, for the year ended 31 July 2026.
Bellway’s forward order book stood at 4,206 homes at the end of July, down from 5,307 a year earlier. Its value fell from £1.52bn to £1.2bn.
Jason Honeyman, CEO at Bellway, said: “With the near-term outlook remaining uncertain, we call on the Government to act now to improve access to housing across all tenures.
“In order to ease affordability constraints and stimulate demand, an immediate reduction in stamp duty alongside a government-backed deposit support scheme for first-time buyers would both drive economic growth and accelerate the delivery of much-needed new homes across the country.”
