Stamp duty revenues have risen sharply over the past year as transactions recovered across both the residential and commercial property markets, according to new figures from HMRC.
Residential stamp duty land tax (SDLT) receipts increased by 21% between the 2023-24 and 2024-25 financial years, rising from £8.57 billion to £10.38 billion.
The jump in revenue reflects a 20% increase in the number of residential transactions, which climbed from 872,000 to 1.05 million over the same period.
The commercial sector also recorded strong gains. Non-residential SDLT receipts rose 15% year-on-year, from £3.05 billion to £3.51 billion. Transaction volumes in the sector increased by 7 per cent, with deals rising from 105,000 to 112,400.
BROAD-BASED RECOVERY
The data points to a broad-based recovery in property activity after two years of subdued dealmaking, driven by easing mortgage rates and improved business confidence.
Ian Futcher, Financial Planner at Quilter, says: “The latest stamp duty figures show a market that has remained relatively resilient in terms of transaction numbers, but one where the tax burden on buyers continues to grow.
“Residential SDLT receipts rose by 21% over the year, despite house prices being broadly flat.
“Therefore this isn’t a story of booming values but of a system that has become increasingly punitive, with higher surcharges and tighter reliefs pushing up the cost of moving.”
FIRST-TIME BUYERS
He adds: “First-time buyers illustrate this tension most clearly. Claims for First Time Buyers’ Relief jumped by 37% as many rushed to complete before the thresholds tightened in April, securing an average tax saving of around £5,000. However, mortgage rates have since fallen from the levels seen in late 2024 and early 2025.
“For those who made a knee-jerk decision to purchase under the old rules, the upfront tax saving may now be overshadowed by the fact they locked into borrowing when rates were materially higher.
“In some cases, the additional annual interest cost could quickly erode, or even exceed, the saving they secured, meaning the timing of the purchase may not ultimately have delivered the benefit they hoped for.”
LANDLORD PRESSURE
And he says: “The pressure on landlords and second-home buyers has intensified too. Receipts from the higher rates on additional dwellings climbed by almost a fifth after the surcharge increased from 3% to 5%, taking the total to more than £5.4 billion.
“For many investors, the tax landscape is now so onerous that the financial rationale for purchasing a property has weakened considerably, contributing to sluggish turnover in parts of the country.
“The housing market has held up better than some expected.”
“For anyone considering a move, these figures highlight the importance of viewing stamp duty as a central part of affordability rather than an afterthought.
“With surcharges higher, reliefs tighter and mortgage rates still elevated by historic standards, buyers need a clear understanding of both the upfront tax costs and the longer-term mortgage implications before committing.
“The housing market has held up better than some expected, but it has done so in spite of the tax environment, not because of it, and thoughtful planning has never been more important.”
