Letting & Estate Agent Podcast Should we tax UK properties more? - Ep. 2386
Nov 13, 2025
Richard Donnell, Research Director at Zoopla and expert in UK housing markets, dives into the complexities of property taxation. He reveals how stamp duty impacts buyers, especially in London, and discusses why wealth taxes often fail. The conversation highlights the challenges of downsizing for older homeowners and the significant tax breaks on primary residences. Donnell also examines the trade-offs of taxing property more and its implications for housing liquidity, emphasizing the larger economic picture of the £10 trillion UK property market.
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Stamp Duty Is The Main Revenue Generator
- Stamp duty is the UK's biggest property tax, raising about £10–12 billion a year.
- Capital gains on property add about £2 billion, so transaction taxes dominate revenue from property.
Wealth Taxes Face Practical Limits
- Wealth taxes have repeatedly failed elsewhere and are politically difficult to implement.
- Given 75% of UK wealth is in property, a wealth tax sounds logical but is unlikely in the near term.
Stamp Duty Hits The South Hardest
- Two thirds of stamp duty comes from investors, second homeowners and overseas buyers, concentrated in London and the South East.
- Over 50% of stamp duty is paid by people owning multiple properties and 14% by overseas buyers, mainly in London.