From 1 October, stamp duty bills for buyers of average-priced homes in England are set to be more than double the amount paid when the tax on property purchases was last changed in 2014.
With stamp duty bills for average-priced homes having more than doubled since 2014, Jonathan Stinton, head of intermediary relationships at Coventry Building Society, has questioned whether it is time for a change to the system.
From 1 October, stamp duty bills for buyers of average-priced homes in England are set to be more than double the amount paid when the tax on property purchases was last changed in 2014.
Stinton said: “With demand continuing on past the end of the first threshold for the stamp duty holiday and the market suffering from a lack of housing stock, it’s not surprising that house prices are continuing to rise."
House price inflation has seen the average value of a home in England reach £270,973 in July, up from £203,346 in December 2014 when George Osborne announced the latest changes to stamp duty.
Because stamp duty thresholds have not been linked to house price inflation, the extra financial burden on buyers has rocketed.
Stinton went on to say that what is surprising is the doubling of property taxes for the average home buyer over just seven years.
He added: "The Chancellor has an ideal opportunity in the Budget next month to adjust stamp duty so that it is better suited to today’s property market.
Analysis of the latest Land Registry data by Coventry Building Society shows the stamp duty bill for someone buying an average home in England would have been £3,548.65 in July compared to £1,566.92 in December 2014.
The stamp duty holiday that was introduced last summer, remains in force until 30 September, however, buyers have still been paying substantial sums to the taxman this year.
The latest data from HMRC shows the Treasury netted £6.7bn from stamp duty between January and July 2021.
Stinton said: “The stamp duty holiday has proved that the taxman can still take a very healthy amount of revenue with a higher threshold.
"Now could be the right time to review the system and find a way to ease the burden on the average house buyer.”
