According to a report in City AM, Chancellor Rachel Reeves is considering allowing house buyers to pay Stamp Duty in instalments over several years rather than as an upfront lump sum, as the Treasury seeks ways to stimulate the economy.

The paper was told that the idea “pops up” frequently at meetings in the Treasury, and a Tony Blair Institute report suggested it could be achieved through a government loan scheme.

The proposal would offer Reeves a way to boost economic growth through increased property transactions without sacrificing vital Stamp Duty revenue, which generates over £10bn annually for the Treasury.

Staggering the payment of Stamp Duty is a great proposal as it would help unlock more home moves.”

Richard Donnell, Executive Director at Zoopla (pictured), told The Negotiator: “Staggering the payment of Stamp Duty is a great proposal as it would help unlock more home moves, especially in areas with the highest home values and the biggest costs for home buyers.”

“Stamp Duty is a big cost for many buyers that can put them off purchasing a home. Four in five homeowners pay Stamp Duty, with it also hitting two in five first-time buyers.

But he adds: “The real answer, long term, is to remove Stamp Duty altogether, but as a tax that generates over £10bn a year it’s a tough one to reform.”

damaging speculation

The proposal comes after months of damaging speculation about property tax changes that have rattled market confidence. Simon Gerrard, chairman of Martyn Gerrard Estate Agents, has recently reported that it has caused 20% of his agreed sales to fall through.

And Andrews Property Group has already launched a parliamentary petition calling for flexible Stamp Duty payment options, allowing buyers to spread costs over 2-5 years.

Article Courtesy of Negotiator Magazine 19/09/2025