Analysis by Paragon Bank of government data shows that second-home and buy-to-let purchases now account for the majority of Stamp Duty receipts in more than half of English local authorities.
In the 2024/25 financial year, higher-rate additional dwelling (HRAD) transactions generated at least 50% of Stamp Duty receipts in 164 councils across England, up from 62 authorities in 2016/17, when the surcharge was first introduced. That represents an increase from 22% to 56% of English councils over the period.
The figures point to a growing reliance on additional-property purchases within the Stamp Duty tax base.
According to the analysis, many of the areas most dependent on HRAD receipts are large urban authorities rather than traditional second-home markets, suggesting much of the activity is linked to buy-to-let investment.
In around 8% of local authorities, additional-property purchases now account for at least three-quarters of Stamp Duty income. In Kingston upon Hull, HRAD transactions represented 97% of Stamp Duty receipts, while the figure reached 92% in Sandwell.
Authorities including Manchester, Salford and Wolverhampton now derive at least three-quarters of their Stamp Duty receipts from additional-property transactions.
Local authority | HRAD share of receipts (2024/25) | HRAD share of receipts (2016/17) |
Kingston upon Hull, City of | 97% | 68% |
Sandwell | 92% | 63% |
Blackpool | 92% | 79% |
Hyndburn | 89% | 69% |
Barking and Dagenham | 89% | 56% |
Stoke-on-Trent | 85% | 61% |
Burnley | 82% | 65% |
Leicester | 82% | 59% |
Wolverhampton | 81% | 56% |
Lincoln | 81% | 63% |
Middlesbrough | 80% | 53% |
Nottingham | 80% | 61% |
Salford | 80% | 49% |
Luton | 80% | 52% |
Manchester | 79% | 52% |
Region | LAs HRAD share of receipts 50%+ | % of LAs 50%+ |
Yorkshire and the Humber | 14 | 93% |
North East | 11 | 92% |
North West | 31 | 89% |
East Midlands | 16 | 67% |
London | 20 | 61% |
South West | 15 | 58% |
West Midlands | 13 | 43% |
South East | 22 | 34% |
East of England | 15 | 33% |
Read the orginal article: https://propertyindustryeye.com/landlords-and-second-home-buyers-driving-majority-of-stamp-duty-revenues/?utm_source=rss&utm_medium=rss&utm_campaign=landlords-and-second-home-buyers-driving-majority-of-stamp-duty-revenues
