The Housing, Communities and Local Government (HCLG) Committee has called on the Government to launch a formal consultation on stamp duty reform before the end of 2026, arguing that the current system is acting as a drag on housing market activity and mobility.
In its latest report, the Committee highlights concerns that stamp duty is discouraging movement within the housing market, particularly among older homeowners who may otherwise consider downsizing, as well as first-time buyers struggling to take their first step onto the ladder. The findings add to the ongoing debate about how to improve fluidity in the UK housing system and reduce the number of stalled or failed transactions.
The report argues that reforming transaction costs could help improve mobility across all segments of the market, easing pressure on housing supply and making better use of existing stock. It also points to broader inefficiencies in the homebuying process, where high transaction friction continues to contribute to delays and fall-throughs.
Santander UK’s Head of Homes, David Morris, comments:
“Stamp duty has been stifling the housing market for years – preventing older homeowners from downsizing and shutting younger buyers out of the homes they need.
Our 2025 report ‘Fixing the Broken Chain’ revealed that the housing market is failing today’s buyers and sellers, with one in three transactions collapsing, costing the UK economy £1.5 billion every year. While work is underway to make homebuying and selling faster and bring more certainty for those in chains, the costs of Stamp Duty remain one of the clearest barriers to progress.
Today’s report from the Housing, Communities and Local Government (HCLG) Committee is a positive step. It’s an opportunity to move the conversation along from building more homes to reviewing how we can use the stock we already have correctly, freeing up unused bedrooms in the UK, unlocking mobility and giving more people a fair shot at homeownership.”
