Updated October 2026 · Fraser Bond
Commercial · Mixed use
Buying mixed-use property
SDLTnon-residential rates
Financecommercial
Valueeach part
Fireseparation
In short: Mixed-use buildings, such as a shop with flats above, can offer diversified income from commercial and residential tenants. Stamp duty is charged at non-residential rates (0%, 2% and 5% bands), which can be lower than residential rates for larger purchases, but HMRC scrutinises claims. Lenders usually treat them as commercial loans. Value each part separately, check the shop lease and flat tenancies, planning permissions, HMO or selective licensing for the flats, and fire separation between the shop and homes.
Mixed-use stamp duty
SDLT (non-residential rates)–
Mixed-use purchases use non-residential rates.
Frequently asked questions
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Is stamp duty cheaper on mixed-use?
Often, at non-residential rates.
Can I get a residential mortgage?
Usually a commercial mortgage is needed.
Buying mixed-use in London?
Talk to our team or get a free valuation.
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