Introduction
Official figures show that government revenue from Stamp Duty Land Tax (SDLT) has risen sharply, despite ongoing challenges in the housing market. New data published by HM Revenue & Customs reveals that receipts from SDLT rose by 21% between the 2023-24 and 2024-25 financial years.
This increase occurred even as overall housing market activity remained moderate, prompting discussion over why Chancellor Rachel Reeves did not announce reforms in the most recent Budget.
The latest statistics offer insight into the evolving property landscape, setting the stage for ongoing political debate.
Recent Uplift in Stamp Duty Collections
HMRC data show that SDLT receipts climbed from £8.57 billion in the 2023-24 period to £10.38 billion in 2024-25.
The uplift occurred in a market still marked by careful buyer sentiment and moderate price growth. Commentators have attributed the rise in receipts to both increased transaction volumes and adjustments in the SDLT structure.
The report confirms that residential property transaction numbers rose by 20% year-on-year, reaching 1,049,600 compared with 872,000 in the previous period. This increase in activity has contributed to the higher overall yield, even as house prices have remained broadly stable.
Surge in Revenue from Second Properties
Receipts from transactions involving additional residential properties, such as second homes and buy-to-let investments, saw a significant increase. The figures indicate that tax from these transactions rose by 19%, amounting to £5.43 billion, which is an additional £870 million compared with the previous year.
A substantial portion of transactions 211,700 in total were subject to the Higher Rate on Additional Dwellings (HRAD) surcharge. These brought in £2.79 billion in additional revenue, underscoring the impact of surcharges on tax collections from property investors and second homeowners.
Regional Distribution of SDLT Receipts
SDLT receipts remain highly concentrated geographically, with Southern England particularly London contributing a significant share. According to HMRC, London generated £5.14 billion in SDLT payments, accounting for 37% of the total.
This concentration reflects both the region’s higher property values and continued robust transaction levels compared with other parts of the UK. Recent changes to the SDLT structure have not altered this regional disparity, which remains a central feature of property taxation and the broader housing policy landscape.
Changes to Stamp Duty Thresholds
In April, the nil-rate tax threshold reverted from £250,000 to the previous level of £125,000, while the threshold for first-time buyers fell from £425,000 to £300,000. These adjustments reduced the number of buyers qualifying for tax-free status or reliefs, thereby broadening the SDLT tax base.
Claims for First Time Buyers’ Relief reportedly increased by 37% as purchasers moved to complete transactions before the changes took effect. Many first-time buyers were able to secure an average tax saving of approximately £5,000 prior to the revision of the thresholds.
Political Debate on Stamp Duty Reform
Chancellor Rachel Reeves opted not to introduce reforms to Stamp Duty in her recent Budget statement, despite calls for change from some sections of the property industry.
Her decision comes as the main opposition party, the Conservatives, has pledged to scrap Stamp Duty entirely for primary residences if they form the next government. However, under this proposal, the tax would remain in place for buyers of second homes and buy-to-let properties.
The policy debate over the future of Stamp Duty continues against a background of rising tax receipts and shifting market conditions. The prospects for reform remain uncertain ahead of the next general election.
Final Summary
The latest government figures illustrate a significant rise in Stamp Duty receipts at a time when the property market faces ongoing challenges. An increase in transaction volumes, tighter reliefs, and changes in SDLT thresholds have collectively contributed to the higher yield.
The ongoing geographic concentration of receipts, combined with calls for reform from both industry figures and political parties, highlights the complexities facing policymakers. As debate continues in advance of the next election, buyers and industry professionals alike are monitoring these developments closely.
For those looking to keep up with real-time updates on tax policy and housing market trends, financial tracking tools such as the Pie app provide useful insights.
