Stamp Duty Land Tax (SDLT) has become one of the most influential — and controversial — forces shaping the UK property market.
And it’s undergone a significant transformation over recent decades, reflecting government interventions aimed at balancing housing market stability, public revenue needs, and housing affordability.
Nowhere is its impact more visible than in London, as according to HMRC figures for the 2023/24 financial year, the capital accounted for £4.55 billion in residential SDLT tax receipts — representing an extraordinary 41% of the total collected across England and Northern Ireland.
When combined with the South East region, this proportion rises to 62%, underscoring the heavy concentration of property market activity in London and its surroundings.
Which London boroughs have paid the most stamp duty?
Within London itself, certain boroughs dominate SDLT contributions. Property broker Jefferies London analysed Land Registry data from across London, revealing which boroughs have paid the most in stamp duty over the past decade.
Westminster tops the list with a staggering £3.3 billion paid in SDLT since 2015. Kensington and Chelsea follow closely behind, having generated £2.99 billion over the same period.
These two boroughs command some of the highest property prices in the UK, a key driver of their outsized tax contributions.
Rounding out the top five boroughs by SDLT collected are Wandsworth (£1.86 billion), Camden (£1.39 billion), and Hammersmith and Fulham (£1.17 billion).
Other London boroughs, including Richmond upon Thames (£1.14 billion) and Barnet (£1.08 billion), have also consistently delivered significant tax receipts.
While most London boroughs contribute hundreds of millions in SDLT, pockets of the city report comparatively modest sums.
For example, Barking and Dagenham had the lowest stamp duty receipt total, with homebuyers paying just £84.7 million since 2015.
Changes in stamp duty
In 1997, the rate stood at a flat 1% for property purchases above £60,000.
But over time, stamp duty has evolved into a complex banded system with various thresholds tailored to different property types and buyer circumstances.
In April 2025, the SDLT exemption threshold was halved from £250,000 to £125,000, meaning that properties across all English regions that are at average prices are now subject to stamp duty.
The rationales behind SDLT changes have consistently balanced revenue generation, housing market stability, and the goal of helping first-time buyers.
However, rising rates, particularly in hotspots like London, have magnified the financial burden on homebuyers.
As such, stamp duty remains a pivotal factor shaping affordability, buyer behaviour, and market dynamics across the UK’s property landscape.
Stamp duty is expected to feature in the government’s upcoming autumn budget, with some speculation that it could be replaced with a new national property tax on home sales above £500,000, shifting the cost from buyers to sellers.
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