12th June 2015
Homebuyers paid £1.5 billion more stamp duty in the year to March 2015 than at the height of the property boom in 2008.
Research by Lloyds Bank shows stamp duty raised in England and Wales increased £1.5 billion to £7.7 billion in the year to March 2015 compared to the £6.2 million raised in the year to March 2008. In the 12 months to March 1999, less than £1 billion was raised.
The increase in the past year has been driven by a higher number of residential property transactions and increased prices, with the average homeowner now spending £9,600 in total on stamp duty as they move up the housing ladder.
Homeowners stay in a property for an average of 7.8 years and take three steps up the ladder in their lifetime.
Although there has been recent reform of stamp duty with cuts to the tax for those purchasing property of less than £1 million, there are more people paying stamp duty.
One in three first-time buyers paid stamp duty in 1999 and now over two thirds pay. In London and the South East, nine in 10 first-time buyers face stamp duty costs and London homebuyers can expect to pay the most in duty, shelling out an average of £38,600 over their lifetime.
Nitesh Patel, housing economist at Lloyds, said: ‘The average homebuyer now pays almost £10,000 during their life as they make their way up the housing ladder.
‘The welcome reforms to stamp duty announced by the chancellor last December have helped to reduce stamp duty bills for the overwhelming majority of homebuyers and movers. However, as these figure show, the overall revenue raised with stamp duty actually increased by £1.5 billion in the year to March 2015.’
If stamp duty levels increased in line with house prices since 1999, they would be significantly higher as property prices have increased 159%.
The 0% rate would have moved from £60,000 to £155,000, but is currently £125,000 and the £250,000 threshold would have increased to £648,000.