Could a New Property Tax Replace Stamp Duty - and What It Means for Landlords & Investors

I just read a piece pointing to something big in the pipeline:

Britain might move away from the traditional stamp duty model and instead introduce annual or transaction-based property taxes - especially targeting homes over £500,000.

https://www.thetimes.com/business-money/money/article/homeowners-could-pay-new-property-tax-instead-of-stamp-duty-927h9nc5b

That could change everything.

Here’s what’s on the table:

- A seller or owner-occupier tax on homes above certain value bands

- Possible local property levies replacing council tax in future

- A more stable revenue stream for the Treasury - but a long-term cost for property owners

If this goes ahead, landlords and property investors should sit up and pay attention.

We’ve already seen the direction of travel here in Newcastle.

The double council tax premium on second homes is already live - a clear sign that landlords and property investors are in the firing line for higher ongoing costs.

So, what could this new tax mean?

- Homes held longer and rented? Expect ongoing tax bills, not just one-off costs

- Second homes and investment properties may face much higher tax burdens

- We could see shifts in property values and tenant demand - especially in higher bands

- Regions like Newcastle and the North East might benefit if London markets soften more, but we’ll need to keep our hand on the pulse

This isn’t speculation - actual reform talk is happening now.

It could reshape how we model investment returns.

What’s your take?

- If property tax changes become the norm, would you:

- Review your portfolio strategy?

- Rebalance towards lower-value units?

- Rethink how you structure ownership and rental income?