As a new Prime Minister prepares to take office later this year, speculation mounts over potential policy changes affecting the property market. Estate agents in the Cotswolds have expressed a strong desire to see a break in Stamp Duty Land Tax (SDLT), which currently imposes significant financial burdens on buyers in the region.
Stamp Duty Land Tax is a property purchase tax applied on a sliding scale. For residential properties worth over £125,000, rates start at 2%, escalating to as high as 12% for properties valued above £1.5 million. This steep increase disproportionately impacts the Cotswolds market, where nearly 14% of homes were listed at over £1 million last year.
Local experts note this tax structure has contributed to a market imbalance — a substantial supply of luxury homes above £2 million contrasts with a shortage of willing buyers. Ben Way of Butler Sherborn, which operates in Cirencester, Burford, and Stow-on-the-Wold, explained, “We would love to see a stamp duty break. When relief has been offered in the past, it energised the market significantly.” He added that while rumours suggest the incoming Prime Minister might consider adjustments, it is still early days, and expectations remain cautious.
READ MORE: Gloucestershire Schools Close as Extreme Heat Forces Over 170 to Shut
READ MORE: Wife’s Urgent Fundraising Plea to Help Husband with Rare Lung Cancer Reach 50
Way also highlighted that some properties qualify under ‘mixed-use’ categories, such as farmland or commercial real estate, attracting a reduced SDLT rate of 5% above £250,000. “This presents a valuable saving for buyers, but it hinges on sellers appropriately marketing these properties,” he noted.
Similarly, Amelia Craven, sales manager at Broadway-based Hayman Joyce, underscored the “huge effect” stamp duty has across all price brackets—especially at the higher end. “For a £2 million home, buyers face SDLT bills exceeding £150,000. This additional cost often affects sellers too, requiring transparent discussions about realistic buyer budgets.” She referenced the 2020 Covid-19 SDLT holiday as a clear example of how tax relief can stimulate market activity.
Craven added that stamp duty was initially introduced as a temporary measure but has since increased, making property transactions more challenging. Many prospective buyers delayed purchases in anticipation of budget announcements, only to confront higher charges, which has dampened the resale market.
Data from Rightmove shows that homes listed over £1 million in the Cotswolds rose from 6% in 2019 to 14% in 2025. Broadway remains the priciest area, with average property values around £666,000.
With these factors in mind, estate agents in the Cotswolds eagerly await potential policy shifts that could ease the SDLT burden and revitalize the local housing market.