Multiple Dwellings Relief (MDR)
Multiple Dwellings Relief was an SDLT relief that reduced tax when buying two or more residential properties together. It was abolished from 1 June 2024 and cannot be claimed on transactions completing on or after that date.
Last verified: April 2026 | Source: GOV.UK
ABOLISHED — No Longer Available
Multiple Dwellings Relief was abolished from 1 June 2024. It cannot be claimed on any transaction completing on or after that date. HMRC's official guidance now states: "You can no longer claim SDLT relief for multiple dwellings."
Key Takeaways
- •MDR was abolished from 1 June 2024 — it cannot be claimed on completions from that date.
- •It was available when buying 2 or more residential properties in a single or linked transaction.
- •The relief used the mean (average) price per dwelling to calculate SDLT, reducing tax on bulk purchases.
- •Transitional rules apply if exchange of contracts was before 6 March 2024.
- •Purchases of 6 or more properties may still use non-residential rates, which can be lower.
In this article
Abolition Notice
Multiple Dwellings Relief was announced for abolition at the Spring Budget on 6 March 2024. It was formally removed from 1 June 2024 under the Finance (No. 2) Act 2024.
The Government stated that MDR was being abolished because it was found to be widely misused to reduce SDLT on transactions that were not genuine multiple-dwelling purchases, and the relief no longer met its original policy objectives.
What Was MDR
Multiple Dwellings Relief was an SDLT relief available when a buyer purchased two or more residential properties in a single transaction, or in a series of linked transactions, from the same seller (or connected persons).
The relief was designed to help property investors and developers who bought multiple units at once — such as a block of flats or a row of houses — where the aggregate price would otherwise push the purchase into higher SDLT bands.
How It Worked
Under MDR, SDLT was calculated not on the total aggregate price but on the mean (average) price per dwelling. The SDLT on that average price was then multiplied by the number of dwellings to give the total.
The minimum tax was 1% of the total consideration — ensuring the relief could not reduce SDLT to zero. This minimum applied where the mean price was below the nil-rate threshold.
Worked Example (Historical)
This illustrates how MDR worked before abolition. It cannot be claimed on completions from 1 June 2024.
Without MDR (standard rates on aggregate)
- 3 flats purchased for £600,000 total
- SDLT on £600,000:
- 0% on £125,000 = £0
- 2% on £125,000 = £2,500
- 5% on £350,000 = £17,500
- Total SDLT: £20,000
With MDR (mean price method — historical)
- Mean price = £600,000 / 3 = £200,000
- SDLT on £200,000:
- 0% on £125,000 = £0
- 2% on £75,000 = £1,500
- SDLT per dwelling = £1,500 x 3 = £4,500
- Total SDLT: £4,500
Abolition Date and Transitional Rules
MDR was abolished for transactions with an effective date on or after 1 June 2024.
A transitional rule applies: MDR can still be claimed if contracts were exchanged on or before 6 March 2024 (the Budget date), even if completion occurred on or after 1 June 2024.
In all other cases — where exchange was after 6 March 2024 or completion is after 1 June 2024 — MDR is not available.
What Applies Instead
With MDR abolished, buyers purchasing multiple residential properties now pay SDLT on the full aggregate consideration at standard (or higher) rates. There is no longer any averaging mechanism for residential purchases.
However, for purchases of 6 or more residential properties in a single or linked transaction, non-residential SDLT rates still apply. Non-residential rates can be significantly lower than residential rates on higher-value transactions.
Official Government Source
For official guidance on SDLT reliefs and exemptions (including the confirmation that MDR is abolished):
SDLT reliefs and exemptions — GOV.UKFrequently Asked Questions
What was Multiple Dwellings Relief?
Multiple Dwellings Relief (MDR) was an SDLT relief that reduced the tax when buying two or more residential properties in a single transaction or as a series of linked transactions. It allowed buyers to calculate SDLT based on the average (mean) price per dwelling rather than the total, which often significantly reduced the tax bill.
Was Multiple Dwellings Relief abolished?
Yes. MDR was abolished from 1 June 2024. It cannot be claimed on transactions completing on or after that date, except where contracts were exchanged before 6 March 2024 (the date of the Budget announcement). HMRC's guidance now states: 'You can no longer claim SDLT relief for multiple dwellings.'
What applies instead of MDR for buying 6 or more properties?
For purchases of 6 or more residential properties on or after 1 June 2024, the non-residential SDLT rates apply (which can be lower than residential rates for large purchases). Multiple individual residential rates without averaging now apply to linked residential transactions below 6 properties.
In this article
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Calculate My Stamp Duty UK to help buyers understand the complex world of property transaction taxes.