Homeownership has become little more than a 'pipe dream' for many young people unable to rely on the bank of mum and dad, a committee of MPs has warned, as they urged the government to overhaul stamp duty.
The Housing, Communities and Local Government Committee said a consultation should be launched by the end of 2026 to examine alternatives to the tax, which applies in England and Northern Ireland. The push comes after the 'nil rate' threshold for first-time buyers shrank from £425,000 to £300,000 in April 2025, while for home movers the zero rate halved from £250,000 to £125,000 – prompting a rush of buyers trying to complete before the changes.
“MPs urge stamp duty reform to help first-time buyers as homeownership becomes 'pipe dream' for many.”
Higher house prices in London and the south east mean buyers in those areas face particularly steep stamp duty costs, making it harder to get on the housing ladder. The report said stamp duty 'puts barriers in front of people seeking to buy a new home', adding that it 'reduces the affordability of homeownership, slows the property market, and ultimately damages the economy'. It added: 'While it is a valuable source of revenue for public finances, stamp duty land tax must not be maintained in its current form and needs to be reformed.'
Committee chairwoman Florence Eshalomi said: 'Rates of homeownership in England have declined over the last 20 years. For many people, and especially for those unable to draw upon the bank of mum and dad, the prospect of owning a home is little more than a pipe dream. No silver bullet exists…'
The report said the consultation should consider options including a full replacement, a reduction in rates to stimulate sales, an overhaul of banding thresholds to better reflect local property prices, and an update to reliefs and exemptions. It also recommended that the government make it easier for councils to take control of empty properties by clarifying existing powers and providing new options to recover homes empty for the long term.
'For decades, skyrocketing house prices, slow wage growth and unnecessary barriers in the market have contributed to a deterioration in the affordability of homeownership in England,' the report said. It stressed that more must be done to ensure everyone has a fair chance of buying a home regardless of family background.