The government has released the latest figures for SDLT receipts.
The tax take has fallen from £11.72bn in 2022-23 to £8.57bn.
A not insignificant drop of 27%!
HMRC has put this down to a “fall in transaction numbers” as if that wasn’t self-evident… they have fallen 17% to a measly 872,000 transactions. To put that into perspective:
In 2000, there were 1,431,000 property transactions. In 2009, there were 858,350. In 2016 there were 1,235,020.
Here are some figures for the total SDLT receipts over a variety of years:
- The annual SDLT tax receipts had never been above £10bn until 2014 when they were raised significantly by the Conservatives.
- The previous record had been £9.96bn in 2007/2008 and then £9.27bn in 2012-2013
- SDLT receipts then increased to £12.91bn in 2017/2018 but then fell gently until 2020
- Transaction numbers plummeted during lockdown as did SDLT receipts to £8.67bn
- They soared back to 14.1 in 2021/22 as the pent-up demand was released.
It will come as no surprise to hear that, in the most recent figures, London once again accounted for the highest number of SDLT receipts at £4.5bn (19% down on last year) or 39% of the total.
Westminster in London paid the single most SDLT in the country at £730m. Meanwhile, property purchases for over £1m represented 4% of all transactions but accounted for 52% of the total SDLT paid.
What is obvious is that higher SDLT is doing the exact opposite of what the government wants. It is making the market less liquid and many people who would like to downsize simply won’t because the cost is too high. This also results in an undersupply of family homes that people need.
Unfortunately, I think it is highly unlikely that the government will change SDLT policy imminently. I also think transaction numbers will increase next year as historically they fall in an election year, so this will give the government less reason to analyse the policy.
It is a stupid tax, but one that we will have to continue to live with. This is why it is vital that you find a “best in breed” property that will outperform the market and negotiate the lowest price possible using tested and proven negotiation strategies.
You can find many of the ones I use in my book, The Insider’s Guide To Acquiring £1m to £100m Property in London. This is not mere theory. They are strategies and tactics I use:
“To be frank, we didn’t think Jeremy would succeed in reaching an agreement at a price that would work for us because the sellers, especially one of them, were completely unrealistic. However, he found a solution and agreed a price that the agents didn’t think would be possible and which was very favourable for us…
… As further evidence that Jeremy had our best interests at heart, the property was 28% below our maximum budget and the price he agreed was £335,000 below the maximum we had set for the property.” Mr & Mrs Cole (Chelsea)
To request a free copy of my book simply click here.
