Headlines this week were dominated by Deputy Prime Minister and Housing Secretary Angela Rayner, who admitted she had underpaid Stamp Duty Land Tax (SDLT) on an £800,000 flat in Hove.
She had placed her former family home into a trust for her children, but nevertheless the new flat should still have been counted as a “second property”, meaning a 5% SDLT second-home surcharge. Instead of the normal £30,000, the true liability was closer to £70,000.
The error caused a political storm, and Rayner resigned her posts – not just Deputy PM, but also Housing Secretary, which has left homeowners and landlords here in Herne Hill asking: how will this affect the housing market?
The short answer: not always… and in this sort of instance, not much.
Herne Hill’s housing market is shaped mainly by supply and demand, yields, mortgage rates and local confidence. Over the past 30 years, average prices have risen from around £93,500 in 1995 to almost £740,000 by mid-2025; a 690% increase in property prices despite frequent ministerial reshuffles (15 in the past 20 years alone!).
That said, political change can influence policy. Each Housing Secretary brings their own priorities, whether that’s boosting homeownership or rental reform.
Rayner had oversight of the government’s pledge to deliver 1.5 million homes nationwide during the course of this parliament, with the Office for Budget Responsibility noting that this was not too far off course, earlier in the year. Whether her resignation slows down that progress remains to be seen, but in practice it is the department’s junior ministers and civil servants who ensure policy is carried through.
Locally, Herne Hill and the general SE24 postcode straddles two local council areas, Lambeth and Southwark, who between them have Local Plans to deliver over 33,000 new homes in the next ten years, and this plan – for what words are worth, at least – is currently expected to stay largely on track.
For homeowners and landlords, the key point is this: your property’s value depends far more on Herne Hill’s own market fundamentals than on Westminster reshuffles.
Obviously, we caveat this next section with the opening phrase: you should check the stamp duty you owe with a specialist advisor who can talk it through based on your personal circumstances.
Nevertheless, with SDLT currently back in the spotlight as it is, here’s a useful refresher on what is typically owed by UK Tax-Resident based on purchases at certain price points (as at time of writing, September 2025):
Example: On a £750,000 Herne Hill home, you’d pay £27,500 SDLT.
SDLT must be paid within 14 days of completion, usually handled by your solicitor.
In short, SDLT is a standard cost of buying property. It’s one you need to budget for alongside legal and moving fees.
Most property purchases are straightforward. But where trusts, multiple dwellings, or company ownership are involved, the rules get complicated.
Rayner’s case shows how easily things can go wrong. Tax specialists have called it an “obscure area of law” that many conveyancers won’t encounter in their careers. The fact that conveyancers may not come across them often is not to say that complex cases don’t exist, so if you have any doubt, we recommend seeking proper advice. A quick consultation with a tax advisor or specialist solicitor may save thousands, or may help avoid awkward calls from HMRC later.
The UK property market has weathered far bigger storms, from financial crises to sky-high inflation and soaring interest rates. A new Housing Minister barely registers as a headwind by comparison.
1. How much Stamp Duty do I pay on a Herne Hill property?
On a £750,000 Herne Hill home – not far off our current local average – you’d pay £27,500 SDLT if purchasing as your sole property and main residence. First-time buyers pay nothing up to £300,000 with a discounted rate to £500,000 (above that, full and normal stamp duty is owed). A second property attracts a 5% surcharge.
2. Does political change affect Herne Hill house prices?
Not much (necessarily). Prices here are driven by mortgage rates and lending attitudes, supply and demand and other local factors. Political reshuffles in themselves rarely have long-term effects, although different Housing Secretaries could bring their own priorities to bear. Major governmental change or political and legislative reforms can have an effect.
3. What extra costs should I budget for?
Alongside your deposit and mortgage, budget for SDLT, solicitor fees, surveys, and moving costs. Landlords may also face letting setup and licensing fees.
4. Who can I speak to for advice?
Petermans Estate Agents in Herne Hill are here to help. Whether you’re buying, selling, or letting, you can book a free, no-obligation appointment for clear, local guidance. To book a sales valuation, please click the link here.
We are required by law to conduct anti-money laundering checks on all those selling or buying a property. Whilst we retain responsibility for ensuring checks and any ongoing monitoring are carried out correctly, the initial checks are carried out on our behalf by Lifetime Legal who will contact you once you have agreed to instruct us in your sale or had an offer accepted on a property you wish to buy. The cost of these checks is £60 (incl. VAT), which covers the cost of obtaining relevant data and any manual checks and monitoring which might be required. This fee will need to be paid by you in advance of us publishing your property (in the case of a vendor) or issuing a memorandum of sale (in the case of a buyer), directly to Lifetime Legal, and is non-refundable. We will receive some of the fee taken by Lifetime Legal to compensate for its role in the provision of these checks.