When Kemi Badenoch announced her plan to abolish Stamp Duty Land Tax (SDLT) on primary residences in England and Northern Ireland, it sent shockwaves through the housing and business community.
For contractors, independent professionals and small business owners, the pledge could bring both opportunities and challenges, particularly for those navigating mortgages with non-standard income. But what does the vow really mean, and how might it reshape property decisions in 2025 and beyond?
What Badenoch has promised
Speaking at the 2025 Conservative Party Conference, Kemi Badenoch pledged to scrap stamp duty for buyers purchasing their main home, describing the tax as “unconservative” and “a barrier to mobility and aspiration.”
The proposed abolition would apply only to UK buyers purchasing their primary residence, excluding:
- Buy-to-let and second homes
- Corporate purchases
- Non-UK resident buyers
The estimated cost of the policy is around £9 billion per year, which Badenoch has said will be funded through spending cuts elsewhere in government.
Who would benefit and who wouldn’t
For individuals buying their main residence, this could mean a major saving, potentially tens of thousands of pounds in avoided tax on higher-value properties.
Contractors and independent professionals, who already face tougher lending criteria due to irregular income, would particularly welcome lower upfront costs. It could make home ownership more accessible and ease the financial pressure of moving for new contracts or work opportunities.
However, Badenoch’s promise would not apply to:
- Property investors or landlords
- Company-owned or incorporated property purchases
- Homes in Scotland or Wales (where devolved tax regimes apply)
How contractors and business owners could gain
- Lower barriers to home ownership – Eliminating SDLT would make it easier for those with complex income structures to buy or move home.
- Improved mobility – Contractors often relocate for projects; removing stamp duty reduces the cost of doing so.
- Market stimulation – More movement in the housing market could unlock fresh opportunities for first-time buyers and up-sizers alike.
- Confidence boost for the self-employed – A clear recognition of the need to make property ownership fairer for those outside traditional employment.
Caveats and potential downsides
While the headline looks positive, contractors should tread carefully:
- It’s still a pledge, not a policy. There’s no guarantee the proposal will become law or survive fiscal review.
- Funding remains uncertain. Analysts have questioned how the £9 billion annual cost will be offset, with possible implications for other taxes.
- Property price inflation. Removing stamp duty may drive up house prices, reducing the real-world benefit for buyers.
- Limited to primary homes. Investors and those purchasing through companies will still pay SDLT.
- Devolved regions excluded. The measure wouldn’t automatically apply to Scotland or Wales.
What to watch next
If you’re a contractor, freelancer or limited company director, keep an eye on the following:
- The Autumn Budget 2025 for concrete policy details.
- Whether there’s a price cap on eligible properties.
- How “main residence” will be defined: this could be critical for those who split time between locations.
- Potential offsetting taxes, such as revised council tax or new property levies.
Preparing for possible changes
Even before any stamp duty reform becomes reality, you can take proactive steps:
- Review your property plans: If you’re considering a move or first-time purchase, model the impact of zero SDLT now.
- Stay informed: Follow credible financial updates and Budget coverage for announcements.
- Get mortgage-ready: Gather up-to-date financials, contracts, and company documents to strengthen any mortgage application.
- Seek professional advice: Mortgage criteria for contractors and directors can vary widely, and expert help makes a big difference.
The Broadbench view: Helping non-standard earners get the best deal
At Broadbench, we understand that contractors, freelancers and business owners don’t always fit the traditional mortgage mould. Irregular income, limited-company dividends, and project-based work can make securing a mortgage feel harder than it should be.
That’s why speaking to a Broadbench mortgage adviser gives you the best opportunity to find the most suitable mortgage deal for your unique situation. Our advisers specialise in helping professionals with non-standard income navigate lender criteria, prepare strong applications, and make confident property decisions, whatever happens with stamp duty reform.
Sources: The Guardian, Oct 2025 Reuters, Oct 2025 Institute for Government, 2025
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