Stamp Duty  

Homebuyers paid an average stamp bill of £9,037 in 2023

Homebuyers paid an average stamp bill of  £9,037 in 2023
Stamp Duty bills decreased from 2022 which saw a combined Stamp Duty bill of £11,202 for residential homebuyers (Photo: Chris Ratcliffe/Bloomberg)

Homebuyers paid an average stamp bill of £9,037 over the course of 2023, according to analysis from Coventry Building Society.

This represented a decrease on the previous year which saw a combined stamp duty bill of £11,202 for residential homebuyers.

Additionally, Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said that average stamp duty bills have “almost doubled” over the past ten years from £5,600 in 2013.

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Stinton added that stamp duty is an “easy cash grab” for the Treasury but places a “huge burden” on homebuyers.

“Over the years, different Chancellors have dropped hints and sometimes tinkered around the edges, but it’s been obvious for a long time that this is a tax that needs to be properly reviewed and reformed,” he said.

“The March budget is a great opportunity to make a real change to a tax that is paid by hundreds of thousands of homebuyers every year.”

HMRC receipts

Coventry’s analysis also revealed that, while HMRC receipts for stamp duty land tax reached £11.8bn last year, £8.85bn of this was taken from residential transactions.

Homebuyers currently pay stamp duty if their home costs more than £250,000 but this is set to drop to £125,000 in March 2025, meaning the tax bill on an average priced home in England will jump up by £2,500.

The latest HMRC figures also show there were 114,300 claims for first time buyer relief, with a total of £550mn, and on average £4,812 for someone buying their first home.

Relief

“The relief for first time buyers is clearly very welcome to those getting their foot on the property ladder,” Stinton stated.

However he warned that there should also be some consideration to “other parts of the market” that need more incentive or help to move.

“Downsizers is a logical group for the Treasury to be looking at in this respect, and we hope that when significant reform of stamp duty happens, it takes these homeowners into account.”

tom.dunstan@ft.com

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