Stamp duty receipts and transactions saw a significant rise in 2024–25, according to HMRC’s latest annual report.
The increase was driven by higher surcharge rates, a surge in activity ahead of April 2025 SDLT threshold changes, and strong performance in both residential and non-residential markets.
Total stamp tax receipts rose 23% year-on-year, from £14.8bn in 2023–24 to £18.2bn, with SDLT accounting for £13.9bn, up 20% on the previous year.
Residential SDLT receipts increased 21% to £10.4bn, supported by a 20% rise in residential transactions (up from 872,000 to 1,049,600), while non-residential receipts rose 15% to £3.5bn, with transactions increasing 7% year-on-year to 112,400.
Quarterly data shows that after a sustained rise through 2024, both SDLT transactions and receipts dipped in Q1 2025.
High property prices in southern England meant that this region generated the highest receipts, led by London, which secured £5.14bn in 202425 (37% of the total).
Total SDLT transactions reached 1.162 million, up 19% year-on-year.
The East of England recorded the largest rise in residential transactions, while the East Midlands saw the biggest increase in non-residential activity.
Ian Futcher, financial planner at Quilter, commented: “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 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.
“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.
“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.”
Stamp duty receipts and transactions saw a significant rise in 2024–25, according to HMRC’s latest annual report.