Stamp duty on an average priced property in London is 365 times higher than an average priced property in the East Midlands, analysis from Coventry Building Society has revealed.
The analysis showed that the stamp duty on an average priced home in London was £14,279, the highest of any area in the UK.
Meanwhile, stamp duty for a similarly average priced property was reported to be just £40 in the East Midlands.
This is despite the average priced property in London being only 2.11 times higher than the average property in the East Midlands, thereby making the tax bill “disproportionately” higher.
Coventry Building Society head of intermediary results, Jonathan Stinton, said: “The rumours have started swirling that stamp duty changes are on the horizon, with announcements speculated to be made during the Autumn Statement.
“The numbers show these changes can’t come quickly enough - at the minute some people are paying up to 365 times more tax on something which is only twice as valuable, that’s clearly flawed.”
Stinton additionally stated that a lot more work needs to be done to make sure buyers in the capital are not being hit with a bill which is disproportionately high.
“Homebuyers across the country aren’t being treated equally, and that needs to be addressed,” he added.
The analysis also pointed out that those buying an average priced property in North East, North West, Yorkshire & the Humber will not need to pay any stamp duty before March 2025 - when the current stamp duty thresholds are in place until.
Homebuyers currently pay stamp duty if their home costs more than £250,000 and, in March 2025 this will drop to £125,000.
With this, stamp duty paid on an average priced home is expected to rise across all regions, with London’s stamp duty rising to £16,749.
Stamp duty in the east midlands will experience a similar increase, rising to £2,540.
The building society’s analysis represents a sharp increase from stamp duty disparity in 2014 when the tax on an average priced property was 17.6 times higher in London than in the East Midlands.
tom.dunstan@ft.com
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