As the United Kingdom prepares for a new Prime Minister later this year, uncertainty looms over potential changes to property taxation. Estate agents in the Cotswolds are voicing strong support for a stamp duty break, hoping the incoming leader will ease the financial burden on buyers in this prestigious region.
Stamp Duty Land Tax (SDLT) is a levy payable on the purchase of residential properties, with rates starting at 2% for homes valued between £125,001 and £250,000. However, for properties worth more than £1.5 million, the rate dramatically rises to 12%, placing significant strain on the higher-end housing market. Data shows that nearly 14% of homes listed in the Cotswolds last year were priced over £1 million, making many local buyers vulnerable to hefty stamp duty charges.
Ben Way of Butler Sherborn, with offices in Cirencester, Burford, and Stow-on-the-Wold, emphasizes the impact of the current system. “We would love to see a stamp duty break,” he states. “Previous reliefs triggered notable activity in the housing market. A tax adjustment now could invigorate property sales, especially in the over £2 million bracket where inventory is plentiful but buyer interest has waned.”
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Butler Sherborn also highlights the benefits of the ‘mixed-use’ stamp duty rate, set at 5% for properties combining residential and commercial use, such as farmland or shops. This lower rate presents an attractive alternative for buyers but requires sellers to actively market their properties under this classification.
Amelia Craven, sales manager at Hayman Joyce in Broadway, underscores the tax’s chilling effect across all price points but particularly on premium homes. “For a £2 million property, the stamp duty exceeds £150,000, which is a substantial addition to the buyer’s costs,” she explains. “Such significant upfront expenses inevitably dampen demand and slow transaction speeds, as we witnessed during and after the Covid-19 SDLT holiday period.”
Craven further remarks on the market’s current challenges: “High stamp duty disincentivizes buyers, leads sellers to adjust expectations, and suppresses the second-hand market. The tax was intended as a temporary measure but has grown and persisted, complicating market dynamics.”
Rightmove data reveals a marked increase in luxury listings within the Cotswolds, with homes over £1 million rising from 6% in 2019 to 14% in 2025. The town of Broadway remains the priciest locale, with average property prices around £666,000.
As political leadership transitions, estate agents remain cautiously optimistic that forthcoming policies might bring relief. For now, buyers and sellers alike continue navigating an environment where stamp duty remains a significant hurdle in the Cotswolds property market.