Stamp Duty Land Tax (SDLT) is no longer just a transaction cost—it’s now a strategic force shaping buyer behaviour and market liquidity.
The latest 2025 adjustments to SDLT thresholds (with modest reliefs for FTBs and expanded surcharges for additional properties) have triggered a re-pricing in the mid-range housing market. More buyers are pausing purchases above the £500,000 threshold, leading to increased demand in the £250,000–£450,000 band, particularly in northern and midlands cities.
Investors with portfolios are feeling the weight. The 3% surcharge on additional dwellings is now combined with stricter reporting timelines, forcing smaller landlords to reconsider expansion—or shift toward sourcing deals through SPVs and strategic partnerships.
Key effects:
- Increased use of limited companies to structure purchases for efficiency.
- Rising demand in Scotland and Wales, where land transaction taxes are slightly more favourable in some brackets.
- Delays in completions as buyers explore SDLT mitigation strategies.
For many, SDLT is not just a cost—it’s a filter determining where and what is worth buying.
DXXV assists clients in navigating these thresholds strategically—ensuring deal structures remain tax-efficient while capitalising on emerging gaps in the market.