HMRC data out today shows that homebuyers paid £14.1bn in stamp duty over the past year – up 20% from £11.8bn paid in the previous year, says business advisors and chartered accountants Lubbock Fine.
Lubbock Fine warns that Stamp Duty Land Tax (SDLT), levied on property purchases, negatively impacts labour mobility. The added cost leaves working people ‘stuck’ in their current homes – unable to relocate to a better job because of the cost of stamp duty.
Stamp Duty Land Tax rates have risen from April 1 2025 following changes announced in the Budget. The threshold for paying SDLT has now halved from £250,000 to £125,000, drawing more homeowners into the tax net.
Andrew Noton, Partner at Lubbock Fine says: “The Chancellor slashed the stamp duty allowance in the latest Budget – this has dragged many more homebuyers in the stamp duty net.”
“Very few properties – especially in London and the South East – are worth less than the new allowance. Many more homebuyers will be paying a hefty stamp duty sum on top of the value of their new property.”
“Adding such a large extra cost to a house purchase will deter people from moving. This is a tax on labour mobility which makes it harder to relocate closer to new career opportunities.”
Ease of moving house drives economic activity in local areas
Andrew Noton explains that house moving helps drive economic activity in local areas by creating work for local tradespeople and professional services.
Andrew Noton continues: “The real estate sector is a catalyst for wider economic activity. The more active the real estate market, the greater the demand for building materials, furniture, skilled craftsmen and conveyancing services.”
“For example, hiring local tradespeople to carry out renovation work on a newly bought house puts money in their pockets. They will spend much of this new income in local small businesses like pubs, restaurants and corner shops.”
*Based on HMRC data on Stamp Duty Land Tax receipts for the year ended May 31 2025
