Homebuyers paid £15.4bn in stamp duty last year
Homebuyers paid out a record of £15.4bn in Stamp Duty Land Tax in the 2022-23 tax year, £1.3bn (9%) more than in 2021-22 (£14.1bn). This is according to Coventry Building Society’s analysis of HMRC figures.
Last month homebuyers paid £1bn in Stamp Duty, an increase of £164m (19%) since February.
Coventry's figures show January was the lowest month for Stamp Duty receipts with £827m, while August was the highest with £1.6bn.
Stamp duty receipts set to drop
The Office for Budget Responsibility’s Economic and Fiscal Outlook shows property taxes – including Stamp Duty, devolved property taxes, and the Annual Tax on Enveloped Dwellings – is set to drop by an estimated £4.7bn this year.
This is due to temporary changes in thresholds and a predicted lower number of property transactions.
Lender calls for stamp duty reform
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Last year people paid more tax buying their homes than ever before.
“The new thresholds introduced in September mean homebuyers will get a bit of welcome relief for the next couple of years, but it’s clear those thresholds just aren’t doing enough.”
He added: “The OBR’s own figures estimate that almost 200,000 fewer homes are expected to be purchased over the next year – which would be a hit to the housing market worth tens of billions.
“The Government has a responsibility to step in and do everything they can to help homebuyers, with Stamp Duty being one of the main tools at their disposal.”
“The Stamp Duty Holiday in 2020 and 2021, and the subsequent boom in property transactions, showed just how influential Stamp Duty can be. An ambitious and active reform to the property tax could inject life into the market.”
Stinton concluded: “Alternatively, we could see a structured, concerted effort to increase the supply of new homes which would then allow aspiring first-time buyers more choice, and perhaps a smaller tax burden.”
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
