Badenoch proposes scrapping inheritance tax on family homes, sparking market concerns
Conservative leader Kemi Badenoch pledged to eliminate inheritance tax on primary residences, a move praised politically but criticised by economists for potentially worsening the housing market.
During her conference speech, Conservative leader Kemi Badenoch promised to scrap inheritance tax on primary residences, arguing that forcing families to sell cherished homes to meet tax bills is un-Conservative. The pledge aims to appeal to the party’s core supporters and wealthy London voters, but tax specialists say it could have the opposite effect of her previous stamp-duty reform by encouraging owners to hold onto or even upgrade homes, reducing market fluidity.
Andy Summers of the London School of Economics called the policy "perfectly calibrated to prevent downsizing and further gum up the housing market," while Ian Dyall of Evelyn Partners warned it might push prices higher in constrained areas. The Conservative Party described the tax as morally wrong and a form of double taxation, yet critics argue the change could deepen the UK’s already dysfunctional tax system. The proposal remains a political gambit rather than a fully vetted economic reform.
Why it matters
The plan could reshape property market dynamics and affect millions of homeowners across the UK.
How this story developed
- Sep 29 UK Labour leader proposes replacing pension triple lock with double lock
- Sep 29 Labour leader Andy Burnham delivered his first conference speech, unveiling policy proposals on public ownership, pensions, and electoral reform.
- Oct 3 Burnham announced a shift from the triple lock to a double lock for state pension increases.
- Oct 4 Kemi Badenoch opened the Conservative conference by framing the Tories as a common-sense party, unveiling pledges on tighter welfare, prison expansion and free childcare for high-earning families.
- Oct 5 Badenoch pushed to drop the £100,000 childcare tax cap at the conference.
- Oct 5 Conservative minister Kemi Badenoch announced a £10 billion “Britannia Shield” programme to give Britain an Iron-Dome-style missile and drone defence.
- Oct 6 Badenoch rejected claims the scheme mirrors Israel's Iron Dome.
- Oct 6 Announced a cut to employer National Insurance for 21‑ to 24‑year‑olds from 15% to 7.5%.
- Oct 7 Badenoch announced a defence spending target of 3% of GDP.
- Oct 8 Badenoch denounced Reform UK as ethnically exclusive at the conference.
- Oct 8 Burnham announced that the pension triple‑lock will be scrapped after the next general election and its savings will fund a National Care Service.
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