UK high-value property sales decline following tax reforms

Sales of properties valued at over £5 million in England have fallen following the October 2024 Budget, according to analysis by Knight Frank. The decline in transactions has led to an estimated £541 million drop in stamp duty revenue from these high-value sales, despite an increase in the surcharge for additional properties.

Knight Frank reported that after adjusting for house price movements, the number of sales above £5 million decreased from 2,569 to 2,208. While the higher additional-property rate generated an estimated £201 million in extra revenue, it was insufficient to offset the overall loss in transaction volume. The slowdown is attributed to tax uncertainty, including changes to the non-domiciled tax regime and increased stamp duty surcharges, alongside higher mortgage costs.

Separate research from Beauchamp Estates also indicates that prime central London property sales have fluctuated around recent Autumn Budgets. Their findings show that transaction numbers in the £5 million-plus market fell by between 5% and 17% during periods surrounding recent budgets, though the total value of transactions has occasionally increased due to stronger activity at the very top end of the market.