Rising property prices bring in more stamp duty

August 9, 2017 by Brendan O'Neill

House Prices

According to recent research, homebuyers in England and Wales pay stamp duty fees of just under £12,700 during their lifetime.

The report, produced by Lloyds Bank, was based on an assumption that a buyer would have paid

£758 stamp duty in 2001 for an average starter home. In 2009, the buyer would then have moved up the property ladder, to purchase a second home, paying stamp duty tax of £1,989. In 2017, the homebuyer would then buy their final home, which would incur a huge stamp duty fee of £9,946, leaving the total paid over the years at £12,693.

The report also states that in 2016, £8.3bn was paid by buyers in England and Wales, in stamp duty costs, this has increased by 17% since the year before. The increase is believed to be due to reforms introduced to stamp duty tax in December 2014. Lloyds Bank believes that the larger amount of stamp duty being collected is due to rising house prices. Although the stamp duty rules were changed in 2014, the thresholds are no longer in line with rising prices, meaning that buyers often have to pay some of the tax. The increased amount collected could also be due to increased rates introduced for owners of second properties.

There are also significant differences in the amount collected across the various regions of the country, with Londoners paying more. Wales and the north of England rate as paying the lowest amount in stamp duty tax.