Central London's 150,000 stamp duty problem is quietly reshaping the prime market - London Business News | Londonlovesbusiness.com

A £2m prime property purchase in central London in 2026 triggers a £153,750 SDLT bill before completion, and the total can exceed £250,000 when additional-property and non-resident surcharges apply. SDLT thresholds reverted to pre-2022 levels in April 2025, with rates of 2% to 12% depending on purchase price bands. The additional-property surcharge increased from 3% to 5% in October 2024 and stacks across all bands. A 2% non-resident surcharge applies to overseas buyers and layers on top of the additional-property surcharge when both apply. Time-on-market data shows prime postcodes often take 9 to 12 months or longer to complete, and the gap between prime and other London areas is widening.

"A buyer acquiring an average £2m prime property in central London in 2026 now hands HMRC £153,750 in stamp duty before a single key turns. Add the additional-property surcharge or non-resident surcharge, and the bill climbs past £250,000. It is a tax burden unique in scale to central London, and it is quietly reshaping how the capital's most expensive market actually works. Time-on-market data across the prime postcodes tells a clear story. Stamp duty has become one of the single biggest forces in London prime sales."

"SDLT thresholds reverted to pre-2022 levels in April 2025. Standard buyers pay 2% on £125,000 to £250,000, 5% on £250,000 to £925,000, 10% on £925,000 to £1.5m, and 12% above £1.5m, according to HMRC. The additional-property surcharge rose from 3% to 5% in October 2024 and stacks across every band. A 2% non-resident surcharge applies to overseas buyers and layers on top of the additional-property surcharge where both are triggered."

"London accounted for roughly 37% of all UK SDLT receipts in 2024-25, with HMRC's latest statistics putting total SDLT receipts at £13.9bn. Within the capital, Westminster, Kensington and Chelsea, and Camden generate a disproportionate share. The market impact is visible in the data. According to , the UK estate agent comparison platform that has tracked sales performance and time-on-market data since 2015, central London continues to record the slowest average sale times of any London region, with prime postcodes regularly seeing properties sit for 9 to 12 months or longer before completing."

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