New official figures have laid bare the staggering contribution London makes to the Treasury's Stamp Duty Land Tax (SDLT) receipts, highlighting the immense financial pressure on the capital's property market.
The Billion-Pound Boroughs
According to HMRC data for the 2023/24 financial year, London accounted for £4.55 billion in residential SDLT. This colossal sum represents a massive 41% of the total stamp duty collected across England and Northern Ireland. When combined with the South East, the proportion soars to 62%, underlining the intense concentration of high-value property transactions in and around the capital.
An analysis of Land Registry data by property broker Jefferies London, covering the past decade, reveals a dramatic disparity between boroughs. The City of Westminster stands in a league of its own, with homebuyers there paying a staggering £3.3 billion in stamp duty since 2015. It is closely followed by Kensington and Chelsea, which generated £2.99 billion over the same period, driven by some of the most expensive real estate in the country.
The list of top contributors is completed by Wandsworth (£1.86 billion), Camden (£1.39 billion), and Hammersmith and Fulham (£1.17 billion). Other significant contributors include Richmond upon Thames and Barnet, which both delivered over £1 billion in tax receipts.
The Changing Face of Stamp Duty
Stamp duty has transformed dramatically from its simpler past. In 1997, it was a flat 1% on properties above £60,000. Today, it is a complex, banded system with different thresholds. A significant recent change came in April 2025, when the SDLT exemption threshold was halved from £250,000 to £125,000. This shift means that properties at average prices across all English regions are now subject to the tax, increasing the burden on a wider pool of buyers.
The government's rationale for these changes has consistently balanced the need for public revenue with attempts to stabilise the housing market and assist first-time buyers. However, in high-cost areas like London, rising rates have significantly magnified the financial load for those trying to get on or move up the property ladder.
The Other End of the Spectrum
While some boroughs contribute billions, others tell a different story. The analysis pinpointed Barking and Dagenham as the borough with the lowest stamp duty receipt total. Since 2015, homebuyers in this area have paid just £84.7 million – a figure that starkly contrasts with the sums paid in central London and highlights the vast economic divides within the city.
With stamp duty expected to be a feature of the government's upcoming autumn budget, there is speculation it could be replaced. One potential reform being discussed is a new national property tax on home sales above £500,000, which would shift the cost from buyers to sellers, fundamentally altering the financial dynamics of property purchases in the UK.
