The UK has lost £54m in stamp duty revenue from property sales above £5m in the 18 months following the October 2024 Budget, according to analysis by property consultancy Knight Frank.

The figures have fuelled calls for chancellor John Healey to introduce measures to attract wealthy overseas investors, including a proposed global investor visa, as the government prepares its next Budget.

The analysis compares property transactions in the 18 months before and after 30 October 2024, when former chancellor Rachel Reeves increased the stamp duty surcharge on additional properties from 3% to 5% and outlined changes to the UK’s non-domiciled tax regime.

After adjusting for house price movements, the number of property sales above £5m in England fell by 14%, from 2,569 to 2,208, according to data from HM Land Registry, LonRes and Knight Frank.

Estimated stamp duty revenue from these transactions declined by 16%, from £3.395bn to £2.855bn.

The calculations assume that half of buyers paid both the additional-property surcharge and the 2% surcharge applicable to overseas buyers. While the higher additional-property rate generated an estimated £201m in extra revenue during the second period, this was insufficient to offset the overall decline.

Knight Frank estimates the resulting net shortfall at £541m.

The slowdown in high-value property transactions comes amid a challenging environment for the UK’s prime residential markets, with tax policy uncertainty and higher mortgage costs adding to pressures associated with the Middle East conflict, which began in February.

London’s prime property market nevertheless recorded some signs of stabilisation over the summer, helped in part by the absence of speculation about new property taxes ahead of the Budget.

Prime central London recorded quarterly price growth of 0.3% in September, its first positive quarterly reading in four years, Knight Frank data shows.

Transaction volumes also showed signs of improvement. Sales in prime central and prime outer London fell by 2.5% in the year to September, compared with an annual decline of 14% in March.

The picture remained more subdued in the country market, which covers urban and rural properties valued above £750,000 outside London.

Average prices fell by 4.2% in the year to September, marginally better than the 5% annual decline recorded in June.

The number of exchanges in the country market was 2% lower in the third quarter than in the same period last year.

Foreign Investors for Britain (FIFB), a lobby group campaigning for a new investor visa, argues that the stamp duty figures highlight the potential economic cost of making the UK less attractive to international investors.

“The stamp duty loss is one of many indicators that show what happens when Britain is not competitive on a global stage in attracting overseas investors,” said Leslie Macleod-Miller, chief executive of FIFB.

“Of course, it also grossly understates the wider loss to the country’s economy.”

Prime minister Andy Burnham has ruled out a stamp duty cut in the forthcoming Budget.

However, speculation has grown that Healey could consider a new visa scheme to attract wealthy international investors following several high-profile departures from the UK, including hedge fund manager Chris Rokos.

The debate has also focused on the impact of the government’s replacement for the non-dom regime.

Rachel Reeves introduced a system under which qualifying new arrivals can benefit from an exemption on foreign income and gains for their first four years of UK residence.

James Quarmby, head of private wealth at law firm Stephenson Harwood, has estimated that the changes could cost the Exchequer up to £4bn annually in lost tax revenue. That contrasts with the government’s original estimate that the reforms would raise close to £3bn.

One proposal reportedly under consideration is FIFB’s plan for a global investor visa, which would require a minimum investment of £2.5m and an annual flat-rate tax payment of £200,000 for up to 15 years.

The proposed scheme would also provide a route to indefinite leave to remain. FIFB estimates it could attract more than £225 billion in inward investment over a decade, although that figure represents the organisation’s projection rather than a confirmed economic outcome.