Multiple Dwellings Relief
Multiple Dwellings Relief (MDR) was a Stamp Duty Land Tax (SDLT) relief for purchases of two or more dwellings in a single transaction in England and Northern Ireland. It allowed the SDLT bill to be calculated on the average price per dwelling rather than the total price, often cutting the tax payable on property portfolio or block purchases.
For landlords and investors, MDR made it more attractive to buy blocks of flats, portfolios, or mixed-use deals with multiple units, and was frequently factored into pricing and yield calculations.
However, the UK government abolished MDR for transactions completing on or after 1 June 2024, except where contracts were exchanged before 6 March 2024 and certain conditions are met. In practice, most new acquisitions by landlords can no longer claim MDR, and SDLT is now charged under the normal rates, including the 3% additional property surcharge where applicable.
The Renters’ Rights Act does not directly govern MDR, but together with the abolition of MDR it forms part of a landscape where building or expanding a rental portfolio is more tightly regulated and often more expensive up front. Landlords planning bulk purchases should obtain updated tax advice and model deals without assuming any SDLT relief for multiple dwellings.
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