Ben Quaintrell, CEO of North East estate agency group My Property Box, has welcomed reports that the Government is considering scrapping Stamp Duty in favour of a new property tax on homes valued over £500,000.
It has been reported that Treasury officials are examining the introduction of a proportional national property tax, paid by owner-occupiers on houses worth more than £500,000 when they sell their home. This would replace Stamp Duty on owner-occupied homes, though not on second properties.
Currently, Stamp Duty is charged at a sliding scale, starting at 2% on property values above £125,000, rising to 5% on purchases over £250,000, 10% above £925,000, and 12% on homes worth more than £1.5 million. Buyers of additional properties, such as buy-to-lets, pay an additional 3% surcharge.
Mr Quaintrell said: “Stamp Duty has long been viewed as an unfair tax that can act as a barrier to homeownership, particularly for first-time buyers and growing families looking to move up the property ladder. It distorts the market by adding a heavy cost burden at the point of purchase, which can discourage people from moving. Replacing it with a fairer system could breathe new life into the housing market.”
He added that the proposals would have little effect on most buyers in the North East, where, according to the Office for National Statistics, the average property value in the region as of May, 2025 was £159,000 – compared with the average £290,000 property value in England.
“The reality is that the majority of homes in the North East reach the £500,000 threshold. Property values in our region are well below the national average, so most buyers would be unaffected by this change. In fact, removing Stamp Duty could make it easier for people in our region to move up the property ladder.
“Scrapping Stamp Duty could certainly encourage more people to buy, as it removes a large upfront cost that often deters purchasers. For areas like the North East, this could mean more fluidity in the market, giving people the confidence to move for work, lifestyle, or family reasons without facing a significant financial penalty.”
However, he also cautioned that any changes must be handled carefully to avoid undermining confidence, adding: “The principle of taxing property wealth rather than aspiration is more balanced, but homeowners need certainty and confidence in the rules. The government must avoid layering new taxes on top of old ones, which would risk slowing the market further.
“While a property tax on homes above £500,000 would largely be an issue for London and the South East, here in the North East it could actually give us a competitive advantage. More buyers may look North, where affordability is better and they can avoid the additional costs associated with higher-value homes.”
My Property Box, which has offices in Darlington, Newcastle-upon-Tyne, and Northallerton, North Yorkshire, specialises in sales, lettings, and property management across the North East region.