Stamp Duty revenue slumps for second year in a row

Stamp Duty may be a hot potato subject for both agents and property buyers, but recent Government changes to the tax have not been good for the public purse, new data reveals.

Total Stamp Duty revenue has fallen for the second year running, down by 24% compared to last year, with receipts dropping from £15.3 billion to £11.6 billion. At the same time, there was an 18% decrease in transaction volumes.

The previous year, revenue fell by 27%.

According to the Government, the decreases were due to a combination of a fall in transaction numbers, which came down substantially after Liz Truss’ disastrous mini-budget, and Stamp Duty holidays.

London produced most revenue

London, unsurprisingly, produced the most revenue at £4,545 million, accounting for 39% of the tax take, although that was a 19% reduction when compared to 2022-2023.

And, although houses under £250,000 (including second and BTL properties) represented more than 48% of transactions, they only produced 5% of the SDLT revenue. In contrast, properties over £1 million accounted for just 4% of transactions but 52% of total SDLT receipts.

Further stamp duty holidays unlikely

Revenue for second-homes and BTL totalled £4,565 million in 2023 to 2024, which was £1,160 million (20%) lower than in 2022 to 2023 and just under 40% of overall revenue.

The figures also reveal that first-time-buyer relief cost the Government an estimated £540 million, which was £167 million less than it was in 2022 to 2023. The average relief per transaction was £4,800 but £6,700 in London.

With Stamp Duty an increasingly important source of tax revenue for the Government and receipts falling, any further Stamp Duty holidays are looking increasingly unlikely.