Homebuyers paid £13.7bn in stamp duty between January and November, according to the latest HMRC statistics – up 19% from the £11.5bn paid over the same period last year.
In November, homebuyers paid £1.4bn – down on the £1.5bn paid in October. This was amongst growing uncertainty from buyers and sellers about potential changes to stamp duty following months of pre-Budget speculation.
The OBR’s Economic and Fiscal outlook shows tax on buying residential property in England and Northern Ireland will balloon to £19.7bn by 2030-31.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Stamp duty has long been the hidden sting in the tail of buying a home. The months of speculation ahead of the Autumn Budget added a lot of uncertainty, with buyers and sellers unsure if they should press ahead of wait for potential changes that never came.
“With no reforms announced, stamp duty now feels increasingly outdated and out of step with today’s housing market. We’re using thresholds which were introduced in 2014, but house prices have risen significantly since then. That disconnect means more buyers are being pulled into higher tax bands simply because the market has moved on.
“When people are dragged into paying more tax by default rather than design, it’s clear the system isn’t up to date. At the very least there’s a growing case for the system to be revisited so it better reflects modern house prices. Without it, homebuyers will continue to be crippled by a tax which doesn’t make sense for today’s market.”
