Bungalow Stamp Duty
Stamp duty rates for bungalows in England. Same residential SDLT rates as houses, but bungalows have unique considerations for accessibility conversions, annexes, and retirement buyers.
In this article
Key Takeaways
- Bungalows pay identical SDLT rates to houses — no special treatment based on property type or number of storeys
- Popular with retirees: no downsizer stamp duty relief exists, but selling before buying avoids the 5% surcharge
- Bungalow annexes or granny flats may have previously qualified for multiple dwellings relief (abolished June 2024)
- Second home surcharge of 5% applies from the first pound if you own another property at completion
- First-time buyer relief still available: 0% up to £300,000 on bungalows costing £500,000 or less
Bungalows Pay Standard Residential Rates
A bungalow is a residential dwelling for SDLT purposes. It pays standard residential rates regardless of whether it is detached, semi-detached, or part of a retirement development. The single-storey nature of a bungalow has no bearing on the SDLT rate — what matters is the purchase price and your buyer status.
Use our stamp duty calculator to calculate the exact amount for your bungalow purchase. The current standard residential rates are:
| Purchase Price Band | SDLT Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Park home bungalows — a special case
Bungalows on park home sites (sometimes marketed as "park bungalows") may be treated differently depending on whether they are permanent structures or mobile/ movable property. If the structure is classified as movable under the Mobile Homes Act 1983, it may be SDLT-exempt as a chattel. Standard brick-built bungalows are always subject to SDLT.
Worked Examples
Bungalows in England are most commonly priced between £200,000 and £500,000, with retirement-focused developments often at the lower end. These examples show standard, first-time buyer, and second home scenarios.
£250,000 bungalow — standard buyer
0% on first £125,000 = £0
2% on next £125,000 (£125k–£250k) = £2,500
Total SDLT: £2,500
£250,000 bungalow — first-time buyer
0% on full £250,000 (under £300k FTB threshold) = £0
Total SDLT: £0
Saving vs standard: £2,500
£250,000 bungalow — second home buyer
5% on first £125,000 = £6,250
7% on next £125,000 (£125k–£250k) = £8,750
Total SDLT: £15,000
Additional cost vs standard: £12,500
£400,000 retirement bungalow — standard buyer
0% on first £125,000 = £0
2% on next £125,000 (£125k–£250k) = £2,500
5% on next £150,000 (£250k–£400k) = £7,500
Total SDLT: £10,000
Retirement & Downsizing Considerations
Bungalows are disproportionately popular with older buyers downsizing from larger family homes. This creates a specific SDLT planning challenge: if you buy a bungalow before selling your existing home, you could face the 5% additional property surcharge on the bungalow purchase.
Is there a downsizer SDLT relief?
No. There is no specific SDLT relief for downsizers in England. Unlike some countries, the UK tax system does not grant stamp duty reductions for buyers moving to smaller properties. However, there are important planning strategies:
Option 1: Sell first, then buy
If your existing home completes on or before the bungalow purchase completion, you are no longer an "additional property" owner. No surcharge applies. This is the cleanest solution but requires careful chain management.
Option 2: Buy first, reclaim later
If you buy the bungalow before selling your old home, you pay the 5% surcharge upfront. Once you sell the old property, you can apply to HMRC for a refund of the surcharge within 3 years of selling. There is no interest paid on the refund.
Option 3: Retirement village / leasehold retirement
Some retirement bungalows are sold on long leases rather than as freehold. The SDLT calculation is the same (lease premium rates), but lease terms vary widely. Some retirement schemes use licence arrangements, which can affect the SDLT position.
Replacement main residence rule
The surcharge exemption applies only if the bungalow is intended as your new main residence. Buying a retirement bungalow while retaining your existing home as your main residence (e.g., because a family member lives there) will not exempt you from the surcharge. Always seek legal advice if your circumstances are complex.
Annexes and Granny Flats
Many bungalows feature self-contained annexes — sometimes purpose-built for elderly relatives (commonly called "granny flats"). The SDLT treatment of bungalows with annexes changed significantly in June 2024.
Multiple Dwellings Relief (abolished June 2024)
Before 1 June 2024, if a bungalow had an annexe that qualified as a separate dwelling, buyers could claim Multiple Dwellings Relief (MDR). MDR calculated SDLT based on the average price per dwelling rather than the total, reducing the bill.
MDR was abolished for transactions completing on or after 1 June 2024 following widespread misuse. Bungalow purchases with annexes now pay SDLT on the full purchase price at standard residential rates.
Annexe as separate dwelling — surcharge implications
If the annexe is structurally separate and self-contained, it may still constitute a second dwelling for the purposes of the additional property surcharge. HMRC guidance suggests that buying a property containing two dwellings triggers the surcharge even if you only intend to occupy one. This is an area of ongoing litigation — seek specialist advice if your bungalow has a substantial annexe.
Second Home Surcharge
The additional property surcharge adds 5% to every SDLT band from the first pound. For bungalow buyers who own (or part-own) another property at completion, this applies in full. Given that bungalows are popular as holiday homes in coastal and rural areas, many buyers face this surcharge.
Surcharge example: £320,000 coastal bungalow (holiday home)
Standard SDLT on £320,000: 0% × £125k + 2% × £125k + 5% × £70k = £6,000
Additional 5% surcharge on £320,000 = £16,000
Total SDLT with surcharge: £22,000
For coastal and countryside bungalows purchased as holiday lets, the surcharge is unavoidable unless the property qualifies as a furnished holiday let with specific trading conditions — though HMRC applies strict tests to such claims. See the residential property guide for more on the additional property surcharge rules.
Common Questions
Is stamp duty different for a bungalow?
No. Bungalows pay the same SDLT rates as any other residential property. Whether detached, semi-detached, or dormer, the stamp duty is calculated solely on the purchase price using standard residential bands.
How much stamp duty on a £250,000 bungalow?
A standard buyer pays £2,500. A first-time buyer pays £0 (0% on the full amount under the £300,000 threshold). A second-home buyer pays £15,000 (5% surcharge on the full price plus standard rates).
Do downsizers get any stamp duty relief when buying a bungalow?
There is no specific downsizer relief. However, if you sell your existing home before completing the bungalow purchase, you avoid the additional property surcharge. If you buy first, you can reclaim the surcharge within 3 years of selling your old property.
Does a dormer bungalow pay the same SDLT as a standard bungalow?
Yes. A dormer bungalow — where the roof space has been converted to provide habitable accommodation — is still a residential dwelling paying standard SDLT rates. The converted loft space does not change the property classification or the SDLT calculation. See our house stamp duty guide for the full picture on residential rates.
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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 Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.