Stamp Duty changes have hit top-end market transactions hardest

September 20, 2019

Leading lettings and sales agent, Benham and Reeves, has looked at the impact changes to Stamp Duty Tax have had one the UK property market where transactions are concerned, and where has seen the biggest decline.

In December 2014, changes were made to the way stamp duty was calculated, moving from the old slab structure to a new format that charges a percentage at each price threshold rather than one percentage for the total price of the property.

The changes were introduced to make buying more favourable for the ‘average homebuyer’ with only those buying at the highest price bands in line to pay more.

However, research by Benham and Reeves has found that on average, transaction levels across England since the changes have dropped by -0.8% when compared to the same time period prior to their implementation.

It’s clear that the attack on the top-end of the market has worked with Kensington and Chelsea seeing the largest decline, with transactions since the changes down -21.2% when compared to the same time period prior.

The City of Westminster has also seen one of the largest declines in transaction levels at -20.5%, followed by Tower Hamlets (-20.2%), Elmbridge in Surrey (-18.7%) and Cambridge (-18%).

Prime central London compiles much of the worst-hit areas with Islington also seeing a reduction of -17.3%, followed by Hammersmith and Fulham -17.1%.

Kingston upon Thames (-14.2%), Camden (-13.8%) and Welwyn Hatfield (-13%) complete the worst areas for a reduction in transactions since the changes to stamp duty.

Since the introduction of Land Transaction Tax in Wales last year, transactions have already slumped -3.7% when compared to the same time period previous, with Monmouthshire the worst hit, down -15.11%.

However, since changing over to the new Land and Building Transaction Tax in Scotland, transaction levels have increased by 7.9% north of the border, although Aberdeenshire (-16.2%), the City of Aberdeen (-11.6%), the Shetlands (-2.2%) and East Dunbartonshire (-1.1%) have all seen a drop.

Director of Benham and Reeves, Marc von Grundherr, commented:

“While it was the changes to second home and buy-to-let stamp duty that have caused the most detrimental impact to the UK property market, it’s clear that even on a residential basis, the Government’s re-shuffle has dented buyer sentiment across the board, particularly at the top end of the market.

Of course, those buying a home at the highest price threshold may be better able to afford stamp duty, but a steep increase has left many thinking twice, while the average home buyer is still consistently caught out by having to pay it, and often deterred as a result of factoring it in prior to a purchase.

Although the idea of switching the responsibility to the seller was a welcome one until it was quickly backtracked on, the Government should seriously consider scrapping their archaic money grab to help stimulate an otherwise weary housing market, as tinkering with the nuts and bolts has done nothing to help.”

Largest declines in transaction volume pre and post stamp duty changes
England
Location / Area
Change in Sales Transactions
Kensington and Chelsea
-21.2%
City of Westminster
-20.5%
Tower Hamlets
-20.2%
Elmbridge
-18.7%
Cambridge
-18.0%
Islington
-17.3%
Hammersmith and Fulham
-17.1%
Kingston upon Thames
-14.2%
Camden
-13.8%
Welwyn Hatfield
-13.0%
England
-0.80%
Scotland
Location / Area
Change in Sales Transactions
Aberdeenshire
-16.2%
City of Aberdeen
-11.6%
Shetland Islands
-2.2%
East Dunbartonshire
-1.1%
Moray
0.8%
Highland
4.2%
Clackmannanshire
4.7%
Argyll and Bute
5.6%
West Dunbartonshire
6.8%
Angus
7.0%
Scotland
7.86%
Wales
Location / Area
Change in Sales Transactions
Monmouthshire
-15.11%
Newport
-14.79%
Vale of Glamorgan
-12.67%
Merthyr Tydfil
-12.07%
Caerphilly
-11.48%
Conwy
-9.89%
Swansea
-8.88%
Carmarthenshire
-6.06%
Wrexham
-5.01%
Powys
-1.55%
Wales
-3.64%

Each data set is based on the time-frame since the change in stamp duty tax compared to the same time-frame previous to the changes to give a like for like comparison.

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Estate Agent Talk

London’s prime residential market isn’t falling — it’s repricing

By Daniel Austin, CEO and co-founder at ASK Partners London’s prime residential market has looked subdued by global standards, but framing current conditions as a decline overlooks the more important underlying dynamic. The market is undergoing structural repricing driven by higher interest rates, shifting tax policy and a more volatile geopolitical environment. This is not…
Read More →
Breaking News

Foxtons Lettings Market Index – April 2026

Market activity strengthens with applicant demand recovering and supply remaining ahead of last year   After the implementation of the Renters’ Rights Act, April provides the final snapshot of market conditions ahead of implementation, offering a clear benchmark for how the sector is positioned entering this new regulatory environment. The lettings market strengthened through the…
Read More →
Breaking News

Five hidden costs catching home buyers out

FIVE hidden costs that’re catching home buyers out, AFTER they put their offer in, says expert • Buyers often focus on deposits and mortgages, but overlook thousands in extra costs • Delays, surveys and legal fees can quickly inflate budgets • Unexpected gaps in funding are becoming increasingly common A lot of home buyers think…
Read More →
Breaking News

Housing Insight Report: March 2026

Buyer activity and sales agreed picked up this month as the housing market entered the spring season, with increased stock levels giving consumers more choice despite ongoing affordability pressures. Meanwhile, the rental market remained highly competitive, as tenant demand continued to outstrip supply and concerns over future regulation weighed on landlord confidence. Sales 1. The…
Read More →
Breaking News

Renters’ Rights Act risks leaving the tenants it set out to protect with fewer options

Fewer than a third of landlords are fully aware that the Renters’ Rights Act bans advance rent payments of more than one month, according to new research from LRG. The survey of 650 landlords and tenants across England and Wales found that 43% know the rules have changed but remain uncertain of the details, while…
Read More →
Letting Agent Talk

Repairs are now a compliance risk: what the Renters’ Rights Act means for letting agents

With the Renters’ Rights Act now in force, much of the industry focus has been on tenancy reform. But for letting agents on the ground, a more immediate pressure point is emerging: repairs and maintenance are quickly becoming one of the biggest areas of compliance risk. According to Taj Sohal, co-founder of Fiixit, an online platform that…
Read More →