Stamp Duty Reform & What It Means for London Property

 
24/08/2025

Rumours ahead of the Budget include replacing Stamp Duty Land Tax (SDLT) with a permanent national levy on homes valued over £500,000 — payable when you sell. While this could ease upfront costs for buyers, implementing such a change would be complex and could take years. With the Treasury reliant on short-term revenue, the proposal may ultimately be sidelined. London, contributing just over 10% of UK home sales but more than 40% of SDLT revenue, would bear the brunt of any adjustment. Industry voices are calling for a revamp of housing taxes — and at LondonDom, we're closely watching these developments. For now, buyer caution continues, despite early-year activity and more properties hitting the market.

August Market Round-Up:

  • Sales momentum is weakening. RICS reports that buyer enquiries slipped from +4% in June to –6% in July, while agreed sales dropped more sharply to –16%, with expectations for near‑term activity remaining flat. Sentiment is only slightly more optimistic over the next 12 months.

  • House prices remain soft in London. According to Office for National Statistics, London recorded the lowest annual house-price growth in June at just 0.8%.

  • Rents are high but easing. London rents rose 6.3% year-on-year to around £2,250 in July — still the highest in England, though annual inflation is slowing.

  • Buyers are benefitting from better affordability. Savills and other analysts report a modest UK-wide recovery, with July seeing the busiest sales activity since 2020 — thanks in part to lower asking prices and improved mortgage terms.

Amid these shifts, we continue to guide clients through evolving market dynamics—from tax speculation to seasonal demand fluctuations. Curious how these trends affect your buying, selling, or investing decisions? LondonDom is here to help.


 
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