Somo flags risk to investors as Stamp Duty receipts jump 24% to £15bn

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Recent HMRC data shows Stamp Duty Land Tax (SDLT) receipts rose 24% to £14.9bn in the 12 months*, up from £12.0bn the year before says Somo, a leading property-backed finance provider.

Risk of Paralysing investment 

Louis Alexander CEO of Somo says, “Landlords and investors are now contributing far more to stamp duty than before.

With another Budget only weeks away, there is real uncertainty about what comes next.”

If the Chancellor refuses to cut or freeze SDLT, she risks paralysing investment. Smaller developers could be left reliant on short-term finance to survive, while landlords face collapsing yields.

The sharp rise in receipts comes just weeks ahead of the Autumn Budget, where speculation over property tax reform – including the possible replacement of SDLT – is expected to intensify.”

Speculation over new property taxes ahead of Autumn Budget

The Treasury is considering reforms that could significantly affect landlords

and investors, including:

  • Replacing stamp duty with a new national property tax – charged annually on homes worth over £500,000, rather than paid upfront at purchase. This could increase ongoing costs for property investors in higher-value areas.
  • A possible ‘mansion tax’ – ending capital gains exemptions on the sale of high-value properties, which would leave investors facing large tax bills when disposing of assets.
  • National Insurance on landlords– taxing “passive” rental income as if it were earned from employment.

“While still only proposals, these ideas have already fuelled nervousness in the market. For landlords, sudden changes to the tax system can alter deal economics overnight – making access to fast, flexible finance, essential.”

With mainstream banks still reluctant to lend, bridging lenders are increasingly stepping in to deliver the speed and flexibility needed to keep projects alive.

Louis Alexander adds, “Bridging finance may be what gives landlords and investors the flexibility to keep deals moving despite shifting tax rules.”

* HMRC, HMRC tax and NICs receipts for the UK, Year-end September 30 2025

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