THE PROPERTY FILTER TAKE
Berkeley Group has asked the government to cap stamp duty at 1% for first-time buyers and downsizers, and to scrap the 5% investor surcharge (Mortgage Strategy, 11 September 2026). It is a request, not a change in law.
The surcharge is real money today. On a £250,000 buy-to-let in England it adds £12,500 to a bill that would otherwise be £2,500 (GOV.UK).
Consider pricing your next deal at today's rates rather than hoped-for ones, and speak to your accountant about timing before the Budget.
Berkeley Group has asked the government to cap stamp duty at 1% for first-time buyers and downsizers (Mortgage Strategy, 11 September 2026). It also wants the 5% surcharge on additional homes removed. Nothing has changed in law. The request came in a trading statement ahead of October's Budget.
What is Berkeley actually asking for?
The housebuilder set out three asks in that statement, which is a scheduled update to investors on how a business is performing. Cap Stamp Duty Land Tax (SDLT, the tax you pay when you buy property) at 1% for first-time buyers. Cap it at 1% for downsizers. And remove the 5% investor surcharge (Mortgage Strategy, 11 September 2026). Berkeley argued the regime was designed when interest rates were 0.25%.
On the revenue case, it pointed to work by HMRC, the UK tax authority. The statement put it this way (Mortgage Strategy, 11 September 2026). "Far more tax revenue is being lost through depressed activity than is being gained through SDLT on new build homes as set out by HMRC's own assessment." Berkeley also said the Office for Budget Responsibility, the government's independent forecaster, "has historically estimated that for every 1% cut in SDLT, transactions may increase by up to 6%." That framing is Berkeley's, not a published OBR forecast for this proposal.
Bellway and Barratt Redrow have recently made similar calls for lower stamp duty (Mortgage Strategy, 11 September 2026). Developer lobbying does not set tax policy. But it tells you what the new-build market is worried about, which matters if new build features in your property investment strategy.
What does stamp duty cost an investor today?
Start with where the rules apply. SDLT covers England and Northern Ireland only. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, each with its own bands (GOV.UK). Berkeley's request touches SDLT, so Scottish and Welsh buyers would see nothing from it directly.
For example, take a £250,000 buy-to-let (a property bought to rent out) in England. On the standard bands you pay nothing on the first £125,000 and 2% on the next £125,000, which is £2,500 (GOV.UK). Because it is an additional property, you pay 5% on top of the whole price. That is £12,500, for a total of £15,000, or 6% of what you paid. You can run your own figures through our free stamp duty calculator.
First-time buyers sit differently. They pay no SDLT up to £300,000, then 5% on the portion from £300,001 to £500,000, with no relief above £500,000 (GOV.UK). On a £400,000 first home that is £5,000, an effective rate of 1.25%. Berkeley has not published the mechanics of its 1% cap, so treat any saving as illustrative. On the simplest reading, 1% of the price, that bill would be £4,000.
Should you change anything before the Budget?
Your liability today is what it was last week. There is no effective date here, because there is no measure. The Budget is due in October (Mortgage Strategy, 11 September 2026) and the government has not said whether stamp duty will feature.
The practical risk is pricing a deal on a tax cut that may never arrive. If a purchase only stacks up once the 5% surcharge disappears, it does not stack up. You may wish to test it at today's rates instead, which is what our free stress test calculator does. How you hold property also changes what any cut would be worth, and our business and systems hub covers ownership structure. Speak to your accountant about your own position.
Key takeaways
Berkeley wants SDLT capped at 1% for first-time buyers and downsizers, and the 5% investor surcharge removed (Mortgage Strategy, 11 September 2026).
None of it is law. Current SDLT rates and thresholds are unchanged (GOV.UK).
A £250,000 buy-to-let in England carries £15,000 of SDLT, of which £12,500 is the additional-property surcharge (GOV.UK).
A first-time buyer paying £400,000 owes £5,000, an effective rate of 1.25% (GOV.UK).
Stamp Duty Land Tax applies in England and Northern Ireland only. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax.
Frequently asked questions
Has stamp duty actually changed?
What is the 5% investor surcharge?
Does this affect Scotland or Wales?
What would a 1% cap save a first-time buyer?
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