The rise in Stamp Duty is indicative of a growing tax burden ahead of the Autumn Budget, analysis from Somo has warned.
Stamp Duty receipts reached £14.6bn in the 12 months to August 2025, according to new HMRC data, marking a 22% increase from £12bn the previous year.
Somo’s review of the data indicated that the jump in SDLT receipts reflects a combination of higher transaction values, rising prices in key regions, and the ongoing impact of multiple property surcharges.
For landlords already dealing with tighter lending conditions, higher borrowing costs and eroding yields, the figures reinforce how taxation has become a central pressure point in the property investment landscape.
With the Budget approaching, speculation across the market is intensifying about potential fiscal reforms. While no formal policy changes have been announced, industry discussion has focused on several potential measures, including the introduction of an annual property tax to replace Stamp Duty, a so-called ‘mansion tax’ on Capital Gains, and possible application of National Insurance to rental income.
Somo’s analysis noted that even the suggestion of such reforms can create volatility, as investors reassess deal viability and pricing in anticipation of future costs.
If the Chancellor maintains the current SDLT structure or introduces additional property-related taxes, Somo warned that smaller developers and professional landlords could face further financial strain.
Margins that are already tight may come under renewed pressure, potentially leading to reduced acquisition activity and slower project delivery.
Louis Alexander (pictured), CEO of Somo, said: “Landlords and investors are now contributing far more stamp duty than before.
“With another budget weeks away, there is real uncertainty about what comes next for their increasingly eroding yields.
Alexander added that access to short-term, property-backed funding remains a crucial tool for maintaining liquidity and enabling investors to adapt to change.
He added: “Bridging finance may be what gives landlords and investors the flexibility to keep deals moving despite shifting tax rules.
“When the landscape changes quickly, having access to fast, property-backed finance can make all the difference.”
