New research from Boon Brokers reveals widespread public opposition to the government’s proposed stamp duty reforms.
The study highlights homeowners’ concerns that the changes could increase financial burdens, reduce market mobility, and create anxiety over future tax hikes.
Under the current rules, buyers pay stamp duty as a fixed sum when purchasing a property and sellers have no liability. Under potential new reforms that could be announced in this year's Autumn Budget, responsibility would shift from the buyer to the seller. Sellers of properties valued over £500,000 could be required to pay SDLT based on the value of their property when they sell.
Alternatively, the government could decide to abolish stamp duty entirely and replace it with a 0.5% annual property tax, levied on property above £500,000, based on the current value of their property.
The research revealed that both proposed changes have been met with strong scepticism, with homeowners expressing concerns that the reforms could unfairly impact those already under financial pressure. These concerns are particularly pronounced among retired and older working households who have already paid off their mortgages. 71% of respondents aged 65 and over believe retired homeowners would suffer most and 66% of retirees say the tax would cause financial strain.
Boon Brokers' survey of 1,000 UK homeowners found that 96% of respondents believe that the 0.5% proposed annual property tax would rise over time and 75% believe retired and working homeowners would suffer most under the annual tax.
57% of all respondents are very concerned about future tax increases and 51% say they would be less likely to buy property if an annual property tax were introduced.
Beyond personal finances, the research also reveals broader market risks with a clear resistance by homeowners to moving or selling if either of the proposed taxes were introduced. Homeowners stated that an annual property tax on high-valued homes, or shifting stamp duty to sellers, would ultimately discourage mobility, reduce incentives to improve properties, and make social mobility increasingly difficult.
42% stated that neither the annual property tax nor a seller-paid stamp duty would be a fair taxation. A main point of contention that the research highlights is public concerns of a “double taxation”, particularly among recent homeowners who have already paid stamp duty on their property purchase.
To compound the matter further, the research also revealed that 44% of all respondents would experience financial strain should an annual taxation be introduced, with 20% stating that they simply could not afford it.
Overall, the research highlights strong public opposition and widespread concern, with homeowners seeing the proposed reforms as unfair, financially challenging, and likely to disrupt both personal finances and the broader housing market.
Gerard Boon, managing director of Boon Brokers, said: "Introducing an annual property tax risks undermining the natural fluidity of the housing market. Rather than encouraging people to move for work, family, or space, it could trap households in properties that no longer meet their needs, which seems counterintuitive to the broader goals of a healthy housing market."
