The tax that estate agents say is stopping UK families from moving
Key Points
- Foxtons chief executive Guy Gittins has urged the new cabinet to prioritise stamp duty reform
- He described the tax as the main barrier to moving for first-time buyers, growing families and downsizers
- Buyers pay stamp duty in England and Northern Ireland on a banded scale; Scotland and Wales have their own versions
- Foxtons sales volumes fell 11% and core London market activity dropped 14% year on year
- Average London house prices were broadly flat at around £541,000
The Chief Executive of London’s largest estate agency has called on the new cabinet to prioritise stamp duty reform, describing the tax as the main obstacle preventing people from moving home.
Guy Gittins, Chief Executive Officer of Foxtons Group, made the call alongside the company’s half-year results on Thursday (30 July).
He said the tax holds back first-time buyers trying to get onto the ladder, families who need more space, and older owners looking to move somewhere smaller. He also expects 2026 to rank among the lowest years for London property transactions on record.
Buyers pay stamp duty on property purchases in England and Northern Ireland, with the rate climbing in bands as the purchase price rises. Scotland and Wales operate their own separate versions of the tax.
The effect of the tax on buyer behaviour showed up in Foxtons’ own numbers. Sales volumes fell 11% to 2,113 in the first half, and activity across the agency’s core London markets dropped 14% year on year.
The comparison period included a rush of buyers completing ahead of the stamp duty change in March 2025, which pulled transactions forward. Average London house prices barely moved over the period, sitting at around £541,000.
Rent changes
The Renters’ Rights Act, which took effect on 1 May, replaced fixed-term tenancies with rolling periodic agreements and gave tenants more freedom to give notice and leave. A small share of renters took that option straight away.
Foxtons recorded an average of 150 additional early terminations a week across its 32,000 tenancies during May and June, with the effect strongest immediately after the rules changed. The rate has fallen since, and the vast majority of tenants stayed where they were.
Foxtons let 6,903 properties in the first half, 6% more than a year earlier, helped by branches it acquired in Milton Keynes and Birmingham. The agency expects termination levels to settle over the second half of the year and does not anticipate significant changes in tenant behaviour or occupancy over the medium term.
