The government’s revenue from stamp duty rose 23% to £18.2 billion in the tax year to April, up from £14.8 billion in the previous year, official figures show.
Within this total, including taxes on share sales, stamp duty on property sales (Stamp Land Tax or SDLT) rose 20% to £23.9 billion over the same period.
This increase occurred before April’s major changes to the first-time buyer exemption and thresholds for other buyers, which meant many more purchases were covered by the tax.
Today’s report from the Office for National Statistics notes that higher stamp duty revenues in 2024/2025 are partly explained by the rush to meet the April deadline, which saw sales peak in the previous period.
It is also partly explained by an increase in the stamp duty surcharge on second homes, which was increased from 3% to 5% at the end of October 2024.
Revenues from residential sales rose 21% to £10.4 billion between 2023/24 and 2024/25, while commercial properties rose 15% to £3.5 billion.
The total number of residential purchases subject to stamp duty increased by 20% from 872,000 to over a million.
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 for buyers continues to grow. “Residential SDLT income rose 21% over the year, despite house prices being broadly flat.
“That’s why this is not a story of flourishing values, but of a system that has become increasingly punitive, with higher benefits and stricter exemptions driving up the costs of moving.
“Starters illustrate this tension most clearly.
“Starter loan applications rose by 37% as many rushed before the thresholds were tightened in April, delivering an average tax saving of around £5,000.
“However, mortgage rates have since fallen from levels seen in late 2024 and early 2025.
“For those who made the hasty decision to buy under the old rules, the initial tax savings may now be overshadowed by the fact that they took out loans when interest rates were significantly higher.
“In some cases, the additional annual interest costs can quickly erode or even exceed the savings they made, meaning the timing of the purchase may ultimately not have delivered the benefit they had hoped for.”
The pressure on landlords and buyers of second homes has also increased, says Futcher.
“Receipts from the higher rates for additional homes rose by almost a fifth after the surcharge rose from 3% to 5%, taking the total to more than £5.4 billion.
“For many investors, the tax landscape is now so burdensome that the financial incentive to purchase real estate has weakened significantly, contributing to sluggish sales in parts of the country.”