Despite subdued market, stamp duty receipts reach £10.8 billion
Home buyers and sellers across the UK are contending with ongoing uncertainty as speculation about possible stamp duty reforms leaves many in a state of tax limbo.
The Treasury has yet to confirm or deny reports that stamp duty could be abolished and replaced with a new tax on sellers of properties valued above £500,000, prompting hesitation among market participants.
Despite the lack of clarity, homebuyers paid £10.8 billion in stamp duty between January and September 2025, according to Coventry Building Society’s analysis of HM Revenue & Customs data.
The figure marks a 22% increase from the £8.8 billion collected over the same period last year. September alone saw receipts reach £1.5 billion, up from £1.3 billion in August, even as concerns about imminent tax changes persisted.
“Buyers and sellers are being left in tax purgatory by the Treasury’s refusal to confirm or deny rumours of changes to Stamp Duty,” said Jonathan Stinton (pictured right), head of mortgage relations at Coventry Building Society.
“Although the September receipts are for property purchases made after the speculation on property tax was already out there, it’s highly unlikely many buyers would have pulled the plug at such a late stage. But transactions could start to dwindle as some buyers choose to hold fire, and we may start to see tax receipts start to lose momentum as a result.
“Any reform to property tax needs to be well considered and well communicated. Buying a home is likely to be the most expensive purchase anyone can make, so it’s normal for people to want to understand the tax implications of waiting a few weeks if the difference could be thousands of pounds.”
While transaction volumes have not yet shown a significant decline, ongoing uncertainty over property tax reforms may lead to delayed transactions for mortgage brokers as clients hesitate to proceed. This could result in a slowdown in new business and increased demand for expert guidance, as buyers and sellers seek advice on the timing and potential impact of any future tax changes. Brokers must stay informed and communicate clearly to support clients through this period of uncertainty.
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