Stamped Out: The Economics of Abolishing Stamp Duty on Primary Residences

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Written By Mitchell Palmer

  • Eliminating stamp duty land tax (SDLT) on primary residences in the UK could allow for 38,000 homes to be built and 349,000 housing sales every year, according to new analysis by the Adam Smith Institute (ASI);

  • It would boost economic activity by nearly £20 billion a year, through increased construction £12.9bn, higher wages £1.2bn due to increased mobility, and greater consumer spending 3.2bn;

  • The total fiscal cost to the Treasury would be £5.1 billion annually, just over half the assumed £9.2 billion cost, once these wider benefits are accounted for;

  • SDLT abolition would increase homeowner mobility by 56%, reversing years of decline in Britain’s housing market;

  • The ASI is calling on the Chancellor to abolish stamp duty on primary residences in the forthcoming Budget.

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Mitchell Palmer
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