Landlords buying up property portfolios have helped non-residential property sales reach a new high this year as investors seek to capitalise on the existing tax rate, ahead of stamp duty changes.

Data from HM Revenue & Customs reveals that non-residential transactions (commercial property, agricultural land, forests, any other land or property which is not residential, six or more residential properties bought in a single transaction and mixed-use transactions) hit 14,150 in October, 42% higher than in October 2023 and 40% higher than September 2024 - a new record high.  

Highest level

Meanwhile, UK housing transactions leapt into six figures in October to 100,410, 21% higher than October 2023 and 10% higher than September 2024 - their highest level since November 2022.

Anthony Codling (pictured), MD equity research at RBC Capital Markets, reports that it has seen big increases or spikes in transactions leading up to tax changes.

“Ahead of the budget there was a lot of discussion and speculation about what the first Labour Budget for 14 years might include with respect to changes to property taxes, in particular on stamp duty and property capital gains,” he tells LandlordZONE.

“It is my belief that the increase will have been driven by a combination of landlords selling to crystalise a capital gain at existing rates and others buying ahead of stamp duty changes.

There was much less discussion about changes in taxation on commercial or agricultural land, so less reason to rush to complete a transaction before the budget.”