With Chancellor Rachel Reeves preparing for the November Budget on Wednesday 26th November, talk of possible changes to stamp duty and property taxes is circulating in the media and sparking discussions. While nothing is yet confirmed, these proposals could affect how we buy, sell and own properties in the upcoming years.
So, if you’re keen to understand what’s being discussed, what the experts are saying, and what this might mean for you, let’s get into it.
Do these potential changes affect my home insurance?
The good news is no, none of these potential tax changes will play a role when we value your home insurance, nor will they affect your current policy. Let's discuss what the speculated changes could mean for you though.
Stamp Duty: how do things work now?
At the moment, you must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland. It’s a one-off payment due within 14 days of completion.
You have to pay tax when you:
- Buy a freehold property
- Buy a new or existing leasehold
- Buy a property through a shared ownership scheme
- Are transferring land or property in exchange for payment, for example, you take on a mortgage or buy a share in a house
Thresholds:
The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay. As of 17th November 2025 SDLT starts to apply when you buy a property that costs:
- £125,000 for residential properties
- £300,000 or more if you’re a first-time buyer
- £150,000 for non-residential land and properties
How much you pay depends on:
- Whether the land or property will be used as a residential property, a non-residential property, or a mixed-use property
- Whether you’re eligible for relief or an exemption
For example, if you’re buying a residential property, there are different rates of SDLT if:
- You’re a first-time buyer
- You already own a property, and you’re buying an additional property
- You’re not a UK resident
What are the proposed changes?
While the government hasn’t announced any firm plans yet, several big ideas are on the table which could significantly reshape the property landscape. Let’s unpack these potential changes and consider what this could mean for buyers, sellers and homeowners. It’s important to note that these potential restructures are, at this point, purely speculative.
1. Abolishing stamp duty
One of the most discussed and radical proposals is getting rid of stamp duty altogether, which is a tax on the purchase of homes in England and Northern Ireland, relative to the value of the property when bought.
Currently, those buying homes for less than £125,000 do not pay stamp duty. Those buying homes worth more pay a percentage of the value of the home. First-time buyers do not pay any stamp duty on properties worth up to £300,000.
2. Introducing a national property tax
Instead of a one-off stamp duty payment, some reports suggest a new annual tax on homes worth over £500,000. The tax would be payable by owners of homes over that threshold, but yearly after purchase rather than upfront, replacing both stamp duty and council tax.
The annual rate would be set by the government, with reports suggesting that homes between £500,000 and £1 million could be taxed at 0.54% of their value each year; more expensive properties would face higher rates. Meanwhile, people purchasing homes valued under £500,000 would not pay anything. These rates are not confirmed as yet though.
This approach would shift the cost burden away from the point of purchase and onto ownership, helping first-time buyers but potentially increasing long-term costs for wealthier homeowners.
The UK’s largest property portal, Rightmove, indicates that “the differences between regions would be stark. Our data shows 59% of homes for sale in London are over £500,000, compared with just 8% in the North East. In the South East, 39% of homes sit above that line, while in Yorkshire and the Humber it’s only 13%. That means London and much of the South would feel the impact of the changes more strongly than other regions.”
Want to see what this could mean for you? Use the calculator below to see what you’d pay under the current stamp duty scheme, versus what you could pay if the national property tax was introduced. This is just an indication of what you could pay, and isn't intended to replace any other advice or tax calculations.
3. National Insurance tax for landlords
Rental income is classed as standard income and taxed at the prevailing rate of the person’s income tax. Under this current system, many landlords don’t pay National Insurance unless HMRC considers them to be running a property business, for example, if:
- Being a landlord is their main job
- They rent out more than one property
- They are buying new properties to rent out
The Resolution Foundation, which focuses on low to middle-income households, has proposed a change to this system, suggesting:
- A 20% basic rate for all landlords, and an additional 8% for earnings over £50,270
This could raise around £3 billion a year, but might also make renting out a property less profitable, potentially reducing supply or pushing up rents as many landlords could choose to pass this increase onto their tenants.
4. Capital gains tax changes (CGT)
CGT is charged on profits from selling assets like second homes or investments. Main homes are currently exempt, but reports suggest that the exemption could be reviewed for very high-value properties.
This would mean those selling expensive properties would be subject to CGT, the current rates being 24% for higher-rate taxpayers and 18% for lower-rate taxpayers.
How might these proposed changes affect the property market?
Getting rid of stamp duty would likely be welcomed by many home buyers, especially first-time buyers. However, experts say that removing the tax could have some significant consequences of scrapping stamp duty for primary residences, affecting buyers, sellers and the wider UK economy.
1. House prices could rise
History suggests that when stamp duty is reduced, like during the post-COVID “stamp duty holiday”, house prices tend to go up. That’s because buyers have more money to spend, which pushes demand higher.
It’s unclear whether removing stamp duty altogether would have the same long-term effect, but most experts agree it could still drive up prices, especially in areas where demand is already strong.
That means while first-time buyers might save on tax, they could end up needing a larger deposit if prices rise.
2. Potentially bigger benefits for wealthier buyers and regional differences
Many first-time buyers already don’t pay stamp duty as homes worth up to £300,000 are exempt in England and Northern Ireland; the challenge for them is to raise a deposit. So, getting rid of the tax entirely would mostly help people buying larger, and more expensive homes.
According to Rightmove, there would also be regional differences associated with this suggested policy, for example:
- In the North East, around 76% of homes are already stamp duty-free for first-time buyers
- In London, that number drops to just 11%
Therefore, more buyers in southern England would likely benefit if the tax were abolished and not replaced with anything else.
3. Could stimulate or stagnate the housing market
One of the main arguments for scrapping stamp duty is that it could make it easier for people to move.
Without a big upfront tax bill, downsizers, for example, might be more likely to sell larger homes, freeing them up for growing families. This could help make the market more flexible and open up more options for buyers.
However, others think the effect might be limited. Stamp duty can be a relatively small part of overall moving costs compared to estate agent fees, conveyancing, home insurance (most mortgage lenders require you to have insurance in place before you can exchange) and removals. So, removing it might not be the game-changer some expect.
4. Potential tax rises elsewhere
Stamp duty raises a lot of money for the Treasury, so abolishing it would leave a gap in the public finances. The question for any administration tempted to scrap or reduce stamp duty is how else it finds the money.
One option is to raise other property taxes; as some analysts have said, the main consideration is not what is scrapped, but what replaces it.
5. Impact on renters
While scrapping stamp duty could make life easier for homeowners, it might have the opposite effect for renters.
If landlords still had to pay stamp duty on investment properties, it could make renting less attractive as a business, leading to fewer rental homes and potentially higher rents. With the Renters Rights Act also coming into force, letting out property is already becoming less appealing for many landlords.
The Institute for Fiscal Studies (IFS) also notes that removing stamp duty for owner-occupiers, but not landlords, could make owning a home even more tax-advantaged than renting one.
While we can't predict the outcome of the upcoming budget, or offer any financial advice, we hope this has helped you understand what these potential changes could mean for you should there be any changes made in the budget.
Sources:
https://www.gov.uk/stamp-duty-land-tax
https://www.bbc.co.uk/news/articles/cm2k1m56xgjo
https://www.rightmove.co.uk/news/articles/property-news/stamp-duty-property-tax-changes-explainer/
https://www.gov.uk/renting-out-a-property/paying-tax
https://www.bbc.co.uk/news/articles/c9v7wppzm2ro
https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
https://www.rightmove.co.uk/press-centre/rightmove-asks-government-to-review-stamp-duty-thresholds/
https://ifs.org.uk/
https://www.resolutionfoundation.org/
