HMRC’s latest annual stamp tax report showed a sharp increase in receipts and transactions in 2024-25, driven by higher surcharge rates, forestalling activity ahead of April 2025 SDLT threshold changes, and continued strength in both residential and non-residential markets.
Total receipts rose 23% year-on-year, increasing from £14.8bn in 2023-24 to £18.2bn in 2024-25.
SDLT receipts grew 20% over the same period to £13.9bn.
HMRC attributed this to the uplift of the Higher Rates for Additional Dwellings (HRAD) surcharge from 3% to 5% on 31st October 2024, alongside buyers accelerating purchases ahead of the April 2025 threshold changes.
Residential SDLT receipts increased 21% to £10.4bn, supported by a 20% rise in residential transactions (up from 872,000 to 1,049,600).
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, breaking the upward trend.
Historic peaks were recorded in Q2 2021 (transaction volumes at the end of the SDLT holiday phase-out) and Q3 2022 (highest net receipts).
Regionally, receipts remained concentrated in Southern England due to higher property prices.
London generated £5.14bn in 202425 (37% of the total), while Northern Ireland recorded the lowest receipts at £110m.
All regions saw increases in both residential and non-residential receipts, with Northern Ireland posting the strongest residential growth and the North East leading non-residential increases.
Total SDLT transactions reached 1.162 million, up 19% year-on-year, again influenced by forestalling.
The East of England recorded the largest rise in residential transactions, while the East Midlands saw the biggest increase in non-residential activity.
By price band, lower-value residential properties (£250,000 or less) made up 44% of transactions but only 6% of receipts.
Properties over £1m accounted for just 3% of transactions yet generated 41% of residential SDLT receipts.
The non-residential market showed similar skew: properties valued above £1m represented 12% of transactions but produced 76% of receipts.
Ian Futcher, financial planner at Quilter, said: “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.
“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.”
He added: “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.”
Futcher said: “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.”
