The previous government flirted with stamp duty cuts several times. Former chancellor Rishi Sunak offered homebuyers a stamp duty “holiday” during the pandemic.
Liz Truss and Kwasi Kwarteng later introduced a temporary stamp duty cut in their infamous mini-Budget in 2022. But the cuts were short-lived, and the Treasury has raked in some £20bn since then.
Mr Sunak later vowed to make a stamp duty cut permanent in his manifesto as the party scrambled to avoid an embarrassing election defeat.
Nathan Emerson, of estate agency trade body Propertymark, said: “While right-sizing will likely free up a bit of extra cash and lower expenses through energy bills, reduced maintenance costs and in some cases a smaller council tax bill, there are additional costs which can add up and deter people from making their all-important move.”
Jo Pocklington, of Purplebricks Mortgages, said: “First-time buyers are the lifeblood of the housing market. Their absence from the property buying chain has a knock-on effect on all other movers.
“Removing stamp duty for downsizers should be considered, alongside all other options as part of a suite of solutions to these problems.”
Labour declined to comment on changes to stamp duty. A Treasury source pointed to previous comments by the Chancellor that “difficult decisions” would need to be made to plug a £22bn “black hole” left by the Conservatives.
A government spokesman said: “We do not comment on speculation around tax changes outside of fiscal events.”
