Imagine walking into a London estate agent’s office and hearing that you won’t pay a single penny in stamp duty on your first home – that’s the promise Kemi Badenoch, Secretary of State for Business and Trade just made to a cheering crowd.

On 27 September 2023, during the closing night of Conservative Party Conference 2023Manchester Central Convention Complex, the 43‑year‑old minister declared, “The next Conservative government will abolish stamp duty.” The declaration was met with a standing ovation from party members gathered in Manchester, England.

Stamp duty land tax (SDLT) currently slices a percentage off every property purchase in England and Northern Ireland. Zero percent up to £125,000, two percent from £125,001‑£250,000, five percent from £250,001‑£925,000, ten percent from £925,001‑£1.5 million and twelve percent on anything above that. First‑time buyers get a relief up to £300,000, and there are surcharges for second homes (5 %) and non‑UK residents (2 %). That tax regime adds roughly £1.2 billion to the Treasury each year, according to HM Revenue & Customs.

What the current stamp‑duty landscape looks like

At its heart, SDLT exists to raise revenue while tempering an overheated housing market. Yet the tiered rates have become a source of frustration for buyers and developers alike. A typical London 2‑bed flat priced at £650,000 currently incurs a £32,500 SDLT bill – a sum that can tip a buyer’s budget from “affordable” to “unattainable”.

For first‑time buyers, the relief threshold of £300,000 was introduced in the 2017 Autumn Budget, but even that only eases the burden on entry‑level properties, leaving mid‑range homes still heavily taxed.

Since the pandemic, the government experimented with a temporary “stamp‑duty holiday” that lifted the zero‑rate band to £500,000 from July 2020 to June 2021. The measure sparked a flurry of transactions, but once the rates reverted, the market cooled sharply, exposing how sensitive buyers are to tax changes.

Why the Conservatives are pushing abolition now

There’s a political calculus behind the announcement. Prime Minister Rishi Sunak, Prime Minister of the United Kingdom has repeatedly said he wants to cut taxes, but he’s also been careful to stress inflation‑reduction as his top priority. Chancellor Jeremy Hunt, Chancellor of the Exchequer earlier in the conference warned, “There are no shortcuts to lower taxes,” yet admitted the current level of taxation is “too high”.

The timing lines up with an upcoming general election that must be called by 28 January 2025 – most pundits expect it in the autumn of 2024. By promising a headline‑grabbing tax cut, the Conservatives hope to cement a narrative of “tax relief for families” against a Labour Party that is, according to a YouGov poll released during the conference, perceived by 71 % of respondents as handling migration poorly – an issue that often bleeds into broader economic debates.

Scrapping SDLT would be a flagship pledge, a clear contrast to the more nuanced, phased‑in tax reductions that Hunt described as the “first priority”. It also sidesteps the need for a massive reduction in business taxes, which could be politically riskier given the government’s focus on fiscal prudence.

Potential impact on London buyers and the broader market

If the pledge becomes reality, London’s housing market could see a surge in activity. A quick back‑of‑the‑envelope calculation from the Royal Institution of Chartered Surveyors suggests that removing SDLT on a median £750,000 London home would save buyers roughly £57,500 – a chunk that could be redirected into larger deposits or higher‑priced properties.

That could reignite demand in the mid‑range segment, where sales have been sluggish for the past two years. Sellers might feel emboldened to list at higher prices, knowing buyers are now flush with extra cash. On the flip side, the removal of a revenue stream—estimated at £1.2 billion a year—means the Treasury will need to offset the shortfall elsewhere, possibly via higher fuel duties or a tweak to income tax thresholds.

Housing‑affordability advocates are cautiously optimistic. The think‑tank Resolution Foundation argues that a stamp‑duty abolition would deliver a “one‑off boost” to household wealth, but warns that without accompanying measures—such as increased housing supply—the benefit could be short‑lived.

Reactions from stakeholders

Inside the conference hall, Kemi Badenoch said, “I’ve looked at the thresholds, I’ve looked at the rates – cutting them isn’t enough. We need to scrap them altogether.” Her straight‑talk resonated with many rank‑and‑file members, but some senior figures expressed caution.

Speaking to the BBC shortly after, Rishi Sunak reiterated his commitment to tax cuts but added, “My priority right now is to get inflation under control. The stamp‑duty promise will only be delivered if we win the next election and have the fiscal space to do it.”

Industry bodies were split. The Home Builders Federation welcomed the idea, stating it would “unlock construction activity and help address the housing shortage”. Conversely, the National Housing Federation warned that “without a clear plan for funding public services, the net benefit to renters could be negligible”.

Labour’s shadow chancellor, Rachel Reeves, called the pledge “a political stunt that ignores the underlying fiscal realities”. She argued that any attempt to erase SDLT would need to be paired with “a serious review of public spending”.

What comes next: legislative hurdles and timeline

Even with a bold promise on stage, the road to abolition is anything but straight. The policy would need to survive several layers of parliamentary scrutiny: a draft bill in the House of Commons, a review by the Treasury Select Committee, and ultimately Royal Assent.

If the Conservatives secure a majority in the expected 2024 election, they could introduce the bill in the first session of the new Parliament, aiming for implementation before the 2025 fiscal year. However, opposition parties have already signaled they will demand a detailed fiscal impact statement before allowing any vote.

Meanwhile, the Treasury is likely to model several offset scenarios—ranging from a modest rise in corporation tax to a temporary increase in National Insurance contributions—to plug the revenue gap.

Until those numbers are ironed out, the exact timing remains vague. One thing is clear: the next few months will see intense lobbying from developers, local authorities, and consumer groups alike, all trying to shape the final shape of the legislation.