We ask the UK Government to introduce legislation to make moving home fairer for homeowners who are required to move because of genuine changes in their personal circumstances.

Current rules can leave ordinary homeowners facing substantial financial costs when they need to move due to marriage or forming a new household, separation, starting a family, caring responsibilities, disability, ill health, bereavement or relocation for work. These homeowners are not attempting to speculate on or profit from the housing market, yet they may face both mortgage Early Repayment Charges (ERCs) and repeated Stamp Duty Land Tax (SDLT) liabilities within a short period.

We call on the Government to:

Reform mortgage Early Repayment Charges so they are proportionate to a lender’s genuine financial loss, or require lenders to offer reasonable alternatives where a homeowner is moving because of a genuine change in circumstances, such as improved mortgage portability or continuation of the existing mortgage product where appropriate.
Introduce Stamp Duty Land Tax relief for homeowners who are required to move again within a defined period because of genuine life events, preventing them from paying substantial SDLT twice in quick succession on their main residence.
Review the current SDLT system and consider a fairer approach based on the change in property value. This could include taxing only the increase in value between the home being sold and the home being purchased, and considering an appropriate credit or refund where a homeowner downsizes to a lower-value property.

Why this matters

The current system can unfairly penalise people whose lives change unexpectedly.

A homeowner may purchase a property, pay thousands of pounds in Stamp Duty, and then, within only a few years, be forced to move because they have married, formed a new household, separated, accepted a new job, become a carer or experienced another significant life event. They can then be required to pay Stamp Duty again, despite not making any speculative gain or attempting to profit from the housing market.

At the same time, they may also be required to pay a substantial mortgage Early Repayment Charge simply because they need to redeem their mortgage before the end of a fixed-rate period. In some cases, these charges can amount to many thousands of pounds, creating a significant financial barrier to moving when circumstances leave little practical choice.

We believe the law should distinguish between speculative property transactions and genuine life events. Reforming these rules would make the housing system fairer, reduce unnecessary financial hardship, support labour mobility, encourage downsizing where appropriate, and help families move into homes that better meet their changing needs without facing disproportionate financial penalties.