Stamp Duty receipts climb 21% as homebuyers face uncertainty over potential tax changes
Residential property transactions generated £12.3 billion in Stamp Duty tax revenue during the first 10 months of 2025, according to analysis by Coventry Building Society of government data.
The latest figure represents a substantial increase of 21% compared with the £10.2 billion collected in the equivalent January-to-October period in 2024.
Homebuyers in the UK have been paying significantly more in Stamp Duty this year following changes to tax thresholds introduced in last year’s Budget.
The highest monthly collection occurred last month, when Stamp Duty receipts reached £1.5 billion. This peak coincides with intensifying speculation among market participants regarding imminent changes to residential property taxation.
Debate surrounding a potential overhaul of the tax regime commenced in August, with reports suggesting that the tax might be abolished and replaced by a new levy applicable to property transactions exceeding £500,000. Chancellor Rachel Reeves will present the government’s new fiscal plans on Wednesday.
Both purchasers and vendors attempt to anticipate the timing and extent of any prospective tax adjustments. Some endeavour to conclude transactions ahead of potential legislative amendments, while others adopt a wait-and-see approach.
“The market is long overdue some clarity,” said Jonathan Stinton (pictured right), head of intermediary relationships at Coventry Building Society. “The Stamp Duty rumours have been swirling for months with buyers and sellers being left in limbo.
“For three months, buyers and sellers have been unsure what changes might be coming and if they’ll win or lose. Buyers might save thousands, but sellers might have to pay thousands. It could be a significant shake up, and people are waiting with bated breath to see where they stand.
“Shifting the burden from buyers to sellers would remove one of the biggest barriers to owning a home - but it’s not without its problems. Passing the tax to sellers could make people at the top of the chain think twice about moving which in turn limits supply and distorts house prices. Any reforms have to strike the right balance so that it supports buyers, keeps sellers in the market, and helps the housing market keep moving.
“All eyes are going to be on the Chancellor next Wednesday to see if the speculation amounts to anything.”
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