Homebuyers paid a total of £11.8bn in stamp duty last year, recent figures from HM Revenue and Customs has revealed.
Analysis of HMRC data by Coventry Building Society found this was a 26.7 per cent fall on the record total of £16.2bn paid in 2022.
This drop in tax revenue could be attributed to fewer people buying homes and a temporary extension of nil-rate thresholds for stamp duty.
The building society explained, by the end of November, there were already 225,870 fewer transactions in 2023 compared with the same period in 2022.
The analysis also detailed the current level of stamp duty, stating that homebuyers in England and Northern Ireland currently pay stamp duty if their home costs more than £250,000.
However, in March 2025 this will drop to £125,000 - taking the tax bill on an average priced home in England from £3,018 to £5,518.
Changes
These findings come amid speculation that changes to stamp duty could be announced as part of the Spring Budget, which is due to take place on March 6.
This is a notion that was greeted with positivity from Coventry Building Society head of intermediary relationships, Jonathan Stinton, who said: “If ever there was a tax which is ripe for change, it’s stamp duty.
“For too long, temporary measures have been used when only a permanent solution will do. Fewer people moved home last year, yet homebuyers still spent over £10bn in property tax.”
Stinton described this as an “enormous spend” which is “only going to increase” until “real change happens”.
“Applying any short term thinking won’t build long term confidence and stability in the market.”
Additionally, Stinton pointed to previous positive steps: “We all saw how the stamp duty holiday in 2020 and 2021 boosted the market, but the sudden spike in demand led to distortion and the after effects are arguably still lingering now.
“Now is the time for a thorough review of tax on property purchases, taking into consideration some of the issues facing buyers and sellers, which helps support the market in the long term."
tom.dunstan@ft.com
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