Stamp Duty changes have hit top-end market transactions hardest

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

Home and Living

Best Budget Smartphones Under $200

In the rapidly advancing digital era, it’s no longer a luxury but a necessity to have a smartphone. Not everyone however needs or is able to pay hundreds of dollars for an expensive device. The good news is that there are numerous budget smartphones under $200 that provide great performance, decent cameras, and a long…
Read More
Rightmove logo
Breaking News

Ten years on: More first-time buyers moving to cities while the coast stands still

New ten-year analysis of the property market shows that more first-time buyers are looking to move to cities, while the coast has seen no growth in new buyers First-time buyer demand to move to Great Britain’s 50 largest cities (excluding London) is up by 16% on average over the last ten years, with Dundee topping…
Read More
Breaking News

Homeowners in England and Wales overvalue their properties by an average of 16%

Homeowners in England and Wales are overestimating the value of their property by an average of 16%, according to new figures. Data from Quick Move Now compares homeowner estimates with formal estate agent valuations and is broken down by both region and property type. Overall, homeowners overvalue in every single category.   Regional breakdown Region…
Read More
Visual blemishes on Roads due to service upgrades
Estate Agent Talk

Emergency Sidewalk Repairs: When to Act and Who to Call

Sidewalks are the unsung heroes of city infrastructure—quietly assisting tens of millions of footsteps every day. But when they crack, disintegrate, or shift all of sudden, they might quickly turn out to be volatile liabilities. In a town like New York, in which pedestrian site visitors are constant and belongings proprietors are legally chargeable for…
Read More
Breaking News

Reapit report reveals agents’ long-term market confidence amid legislative challenges

Despite the significant challenges posed by a shifting economic landscape and the largest wave of housing legislation in decades, estate and letting agents remain steadfast in their confidence about their long-term future in the industry. According to the first Reapit Property Outlook Report 2025, covering the full breadth of sales and lettings agency opinion countrywide,…
Read More
Breaking News

Owner-Occupiers Drive Resilient Commercial Property Market

Buying Becomes 37% Cheaper Than Renting The latest Commercial Property Demand Index from specialist property finance expert, Rangewell, reveals that while investor appetite across the sector held steady in Q2, strong levels of owner-occupied commercial mortgage activity are helping drive market performance, as business owners increasingly move from renting to buying their long-term premises for…
Read More