According to an analysis of the latest HMRC statistics by Coventry Building Association, UK home buyers have seen stamp duty payments rise 20% this year to £8 billion, and properties in all parts of the country are now likely to pay taxes.
“While the bills are still the highest in London and the Southeast, buying average-priced homes in traditionally more affordable areas now has some stamp duty payments, and there is no part of the country’s evasion tax,” Mutual Aid said.
The latest customs data was conducted on April 1 on the lower stamp duty threshold on April 1, which is back to the September 2022 level, followed by former Prime Minister Liz Truss’ mini budget.
Mutual aid said the move means “the threshold for Neil interest rates has been reduced from £250,000 to £125,000, a change that increases the tax on average price housing for £2,500 – from £2,047 to £4,547”.
It added: “Before the change [in April]anyone who buys an average price home in the Northeast, Yorkshire and Humber, Northwest, Central Eastern and West Midlands does not have to pay any stamp duty.
The Building Society said buyers paid £1.4 billion in stamp duty in July, a 35% increase from the £1.1 billion paid in June.
This brings the total amount paid so far this year to £8 billion – £6.6 billion paid in the same period last year increased by 21%.
| area | Ordinary house price |
Stamp duty |
| northeast | £163,679 | £773 |
| Yorkshire and Humber | £204,410 | £1,588 |
| northwest | £212,057 | £1,741 |
| Eastern and Central Region | £238,635 | £2,272 |
| West Midlands | £246,910 | £2,438 |
| southwest | £301,660 | £5,083 |
| East England | £337,920 | £6,896 |
| southeast | £383,486 | £9,174 |
| London | £561,309 | £18,065 |
| England | £290,956 | £4,547 |
source: Coventry Architectural Association
Jonathan Stinton, head of intermediary relations at the Coventry Building Association, said: “The fact that there is nowhere to hide from stamp duty now shows the measure of this tax.
“From London to the Northeast, those who buy typical homes in any region are now hit by a tax blow that can add thousands of moving expenses.”
The senior minister, who has been briefed to the proposal, asked officials to examine how the new “proportional” property taxes are implemented and model their impact.
It said officials will first check potential state property taxes, which will aim to replace stamp duty for owners to occupy the home.
“There are speculations that the new property tax will be shifted from buyers and sellers to sellers – removing one of the biggest upfront obstacles people face – but it has the risk of market distortion,” Stington noted. “The prospect of reform could allow buyers and sellers to delay their moves while waiting for clarity.”
Stinton added: “Once effective, it could reduce the supply of new homes entering the market or distort prices – some owners are trying to sell £500,000 to keep it below the threshold, while others have increased prices to offset taxes.
“The principle is right: our property tax should fit into today’s housing market, not the ones we had decades ago. But it’s crucial, the details are well-designed, so we won’t exchange one obstacle for another.”
