The UK housing market is struggling under a tax system that no longer reflects modern homeownership, says David Powell, chief executive of Andrews Property Group. At the centre is stamp duty – a levy designed for a different era that continues to shape the decisions of buyers, sellers, and investors.
Powell warns that for many households, stamp duty is more than a nuisance: it adds thousands of pounds to already high costs. With deposits rising, mortgage rates volatile, and wages failing to keep pace with inflation, the tax puts homeownership further out of reach, slows mobility, and traps families in unsuitable homes.
Created when house prices were a fraction of today’s levels, stamp duty has barely evolved. Ordinary buyers now face bills once reserved for the wealthy, with ripple effects across the housing sector.
First-time buyers delay entering the market, growing families stay put, downsizers hold onto larger homes, landlords pass on higher costs through rents, and foreign buyers pay premiums that do little to improve affordability. The result is a system that discourages movement, penalises aspiration, and restricts supply.
In the months before the Autumn Budget, rumours of reform sparked hope across the industry. Many believed the government was finally ready to tackle the problem. But that hope has since faded, leaving homebuyers and the market to face the same outdated system, according to Powell.
He said: “Any hope of change has been swept aside by the current government since rumours of reform leading up to the Autumn Budget. A new approach is required if we are truly going to tackle the housing crisis.”
His concern is widely shared. The lack of action signals a government unwilling to confront one of the most significant barriers to market fluidity.
Powel argues that pushing stamp duty reform into the next government term is not just a delay – it is a dereliction of responsibility. The housing market needs stability and confidence now, not years down the line.
He says two paths are on the table:
+ Complete withdrawal of stamp duty, removing a major cost burden and freeing up movement across the market
+ A modernised, fairer tax, designed to support affordability rather than undermine it
He added: “Either option would be a vast improvement on the status quo. What is unacceptable is inertia.”
Reforming stamp duty is not a silver bullet, but it is one of the most immediate and impactful steps available.”
Powell says reform would:
+ Encourage mobility
+ Stimulate transactions
+ Support first-time buyers
+ Help older homeowners rightsize
+ Boost construction and related industries
+ Restore confidence across the sector
“The housing crisis demands bold, decisive action. Stamp duty reform is a logical place to start,” Powell concluded.
Read the orginal article: https://propertyindustryeye.com/housing-market-reform-needed-says-major-estate-agency-boss/?utm_source=rss&utm_medium=rss&utm_campaign=housing-market-reform-needed-says-major-estate-agency-boss
