Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Frozen Stamp Duty Thresholds Linked to Slower UK Property Market

Rising property values and frozen Stamp Duty Land Tax (SDLT) thresholds are being blamed for slowing activity in the UK housing market. The latest HMRC figures show a dip in residential property transactions in July 2026.

Audit, tax and business advisory firm Blick Rothenberg has highlighted that higher house prices are pushing more buyers into higher Stamp Duty bands. The firm notes that unchanged SDLT thresholds are increasing the upfront cost of moving, which is becoming a significant barrier to transactions.

According to HMRC, there were an estimated 96,710 seasonally adjusted UK residential property transactions in July 2026. This figure is down 2% from June 2026 and 1% lower than July 2025.

Blick Rothenberg states that the growing tax burden could discourage potential movers and restrict overall market activity. The firm also points out that while borrowing costs, cost of living pressures, and economic uncertainty have all affected the market, the cost of moving itself is now an increasingly important factor.

The report notes that although activity remains above levels seen during parts of 2023 and early 2024, the market has yet to establish a sustained upward trend. SDLT is identified as one of the mechanisms available to the government to stimulate activity, as it increases the upfront cost of moving and may influence buyer behaviour, especially when household budgets are under pressure.

The article concludes that encouraging transactions should be part of the government’s strategy for the housing market, alongside increasing supply. It emphasises that the property market requires not only new homes but also active movement of people between properties.