Rising values and frozen Stamp Duty Land Tax thresholds are slowing down the property market
Rising values and frozen Stamp Duty Land Tax (SDLT) thresholds are slowing down the property market, say leading audit, tax and business advisory firm, Blick Rothenberg.
Mark Cunningham, a partner at the firm, said: “While borrowing costs, wider cost of living pressures and political and economic uncertainty have all weighed on market activity, the cost of moving itself has become an increasingly important consideration. Rising property values and frozen SDLT thresholds have resulted in a larger tax burden on most transactions, increasing the overall cost of moving.”
He added: “HMRC’s latest transaction figures suggest the housing market continues to struggle to gain any significant momentum. The seasonally adjusted number of residential transactions fell to 96,710 in July 2026, down from 98,390 in June 2026 and 1% lower than July last year.”
Mark said: “While activity remains well above the levels seen during parts of 2023 and early 2024, figures suggest the market has yet to establish a sustained upward trend. SDLT will not be the sole reason transaction levels remain subdued, but it is one of the mechanisms available to the government to stimulate activity.”
He added: “As a transaction tax it increases the upfront cost of moving and is therefore likely to influence behaviour, particularly at a time when household budgets remain under pressure.”
Mark said: “At a time when housing remains a key policy priority, there is a strong argument that encouraging transactions should form part of the government’s strategy alongside increasing supply.”
He added: “The property market does not just need homes to be built. It also needs people to move. If transaction levels remain relatively flat despite a more settled economic backdrop, attention should turn to barriers preventing transactions from taking place.”