Budget Resolution No. 36: Stamp duty land tax (additional dwellings: purchases on or after 1 April 2025)

What happened: On 6 November 2024, the House of Commons voted on Budget Resolution No. 36, which proposed raising the stamp duty land tax surcharge on additional dwellings (such as buy-to-let properties and second homes) from 3% to 5%, effective from purchases on or after 1 April 2025. The resolution passed by 373 votes to 110.

Why it matters: The change means that anyone buying a property they do not intend to occupy as their primary residence will pay a higher additional rate of stamp duty on top of the standard rates. The government's stated aim is to reduce competition from investors and second-home buyers in the housing market, making it easier for first-time buyers and owner-occupiers to purchase homes. Critics argue the measure will deter landlords from buying properties, shrinking the supply of rental homes and pushing rents higher for those who cannot afford to buy regardless of the surcharge level.

The politics: The vote divided along clear party lines. Labour and Labour and Co-operative MPs voted unanimously in favour, joined by the four Green MPs, one SDLP MP, and a majority of independents. All 98 Conservative MPs who voted opposed the measure, as did all four Reform UK members, three Democratic Unionist Party MPs, and one Traditional Unionist Voice MP. There were no notable cross-party rebellions on either side. The resolution forms part of the government's October 2024 Budget package and sits alongside other measures targeting the private rental sector and housing market, including the concurrent Renters' Rights Bill passing through Parliament at the same time.