Data from Rightmove has laid bare a stark north–south divide in the number of homes that would be liable under the government’s proposed property tax. In the capital, 59% of homes for sale are priced at £500,000 or more, with 39% in the South East and 28% in the South West reaching the qualifying figure. By contrast, the North East is well short at 8%, with Yorkshire and the Humber on 13%, the East Midlands 14%, the North West 15% and the West Midlands 18%. The East of England sits in between, at 29%. Rightmove’s specialist commentary welcomed the prospect of changes that could ease the cost of moving, but officials stressed that details would determine whether property owners would be better or worse off in the long run. Colleen Babcock, Rightmove’s property expert, said: “Stamp duty is a huge barrier to movement, from first-time buyers to downsizers. If changes are brought in that make home-moving genuinely more affordable for people then we would welcome them, but without firm details it remains to be seen if a different type of taxation would leave property owners better or worse off in the long run.” However, industry reaction has been cautious. The market could face disruption if policy details are not firm, with one conveyancing industry insider noting that leaks create uncertainty for transactions over £500,000 in the run-up to the Autumn Budget.

To anchor the current debate, the government’s stamp duty regime remains the reference point for any reform. Official guidance shows the present bands for residential property under Stamp Duty Land Tax (SDLT): 0% on up to £250,000, 5% on the next £675,000, 10% on the next £575,000, and 12% above £1.5 million, with higher rates applying to non-natural persons and an extra 5% on top of standard rates for additional dwellings when buying more than one property. First-time buyers enjoy SDLT relief up to £425,000, after which the standard scales apply; higher rates also apply to buy-to-let and second-home purchases. These thresholds and rates provide the backdrop against which any replacement or reform would be measured, and came into effect in late-October 2024 through March 2025. The current framework underscores the potential impact of any shift toward a proportional or national property tax. (todaysconveyancer.co.uk, gov.uk)

The industry’s response to the leak about a possible national or proportional tax has been cautiously critical of the lack of detail, while continuing to press for reforms that support mobility. Mark Slade, a director on the Conveyancing Association board, warned that the leak risks delaying real moves and unsettling existing chains as buyers, sellers and lenders await final policy. “From my point of view, it’s not the potential tax that is the problem, because at this stage we have no idea what it might be, but the fact this has been leaked into the public domain. It creates massive uncertainty in the market for property purchases over £500k in the months ahead,” he said, noting the budget’s timing. In parallel, Propertymark argued that any future changes to SDLT across England and Northern Ireland must be carefully considered and fit for future purpose, emphasising that reforms should support first-time buyers, second steppers and those seeking to right-size. Tim Douglas, Propertymark’s head of policy and campaigns, emphasised that reforms must be evidence-based and work in step with varying property prices and market dynamics across the country. Daniel Austin, CEO of ASK Partners, sounded a more cautionary note, warning that proposals described as a short-term fix risk stabilising neither the market nor long-term growth and could distort pricing near key thresholds. In parallel, Rightmove has consistently signalled that mobility would be helped by retention or upgrading of zero-rate thresholds, arguing that current levels have not kept pace with prices and that a more stable framework would support moving decisions. (todaysconveyancer.co.uk, rightmove.co.uk, theguardian.com)

Looking ahead, the policy signal from Rightmove and industry voices points toward a preference for a staged, mobility-friendly reform rather than quick, ad hoc tinkering. Rightmove has pushed for a permanent upgrade of zero-rate thresholds to reflect price growth and improve mobility, arguing that the current thresholds do not keep pace with market realities. The prospect of a more lasting reform has gained attention in industry circles, with advocates arguing that maintaining or raising reliefs could lower upfront costs, support first-time buyers, and sustain transaction volumes. At the same time, the industry press has highlighted calls for simpler, more predictable rules to reduce the friction of moving, including the possibility of a national property tax replacing SDLT in the medium term, subject to careful modelling and political feasibility. Phil Spencer, the broadcaster and property advisor, has backed Propertymark’s call for stamp duty reform, stressing the value of keeping the existing relief for first-time buyers at the £425,000 level and promoting “right-sizing” for older buyers to free up family homes, while acknowledging the Autumn Budget as a pivotal moment to simplify SDLT, lower moving costs, and accelerate transactions. The policy landscape remains in flux, with proponents arguing for mobility and affordability and opponents warning of potential market distortions if reform is not carefully designed. (rightmove.co.uk, propertymark.co.uk)

Reference Map:

Source: Noah Wire Services