In a dramatic announcement that could reshape Britain's property landscape, Business Secretary Kemi Badenoch has revealed the Conservative Party's ambitious plan to permanently scrap stamp duty for first-time purchasers.
The cabinet minister made the surprise declaration during her keynote speech at the Conservative Party Conference in Manchester, positioning housing affordability as a central election battleground.
The £425,000 Threshold Promise
Under the proposed policy, stamp duty land tax would be completely eliminated for first-time buyers purchasing properties valued up to £425,000. This represents a significant extension of current temporary relief measures that were introduced under previous Conservative governments.
"We will abolish stamp duty permanently for first-time buyers who are buying a house up to £425,000," Badenoch told conference delegates, framing the move as part of the party's broader commitment to home ownership.
Conference Clash Over Housing Policy
The announcement comes amidst growing political tension over Britain's housing crisis, with Labour positioning themselves as the party of housebuilding while Conservatives emphasise support for first-time buyers.
Badenoch didn't hold back in her criticism of Labour's approach, accusing them of planning a "plot to concrete over the countryside" while positioning the Tories as defenders of both homeowners and green spaces.
The business secretary argued: "They want to take away your ability to decide what is right for your local community."
Economic Implications and Market Impact
Property experts suggest the permanent removal of stamp duty could provide substantial relief to aspiring homeowners struggling with the combined burden of high deposits and transaction costs.
The current threshold of £425,000 already covers a significant portion of property transactions outside London and the Southeast, making this pledge particularly impactful for buyers in many regions.
However, questions remain about how the policy would be funded and its potential impact on house prices in the medium to long term.
A Defining Political Divide
With the next general election looming, housing policy has emerged as a key dividing line between the major parties. While Labour emphasises construction targets, the Conservatives are betting on tax cuts for first-time buyers as their pathway to winning over younger voters.
Badenoch's announcement signals a clear intent to make property ownership accessibility a cornerstone of the Tory election campaign, setting the stage for a fierce political battle over Britain's housing future.
