Stamp duty costs homebuyers £12,700 over lifetime

Ryan Bembridge

July 31, 2017

Stamp duty is costing homebuyers £12,700 per person in their lifetime, according to Lloyds Bank research.

Homebuyers paid out 17% more in stamp duty in 2017 at £8.3bn, up from £7.1bn in 2016.

Andrew Mason, Lloyds Bank mortgage products director, said: “Rising house prices have caused stamp duty payments to continue to increase despite the reforms that came into effect from December 2014.

HMRC pays back 10,000 homeowers caught by 3% stamp duty surcharge

“As a result, the £8.3bn raised in stamp duty in 2016 was more than £2bn higher than at the peak of the last housing boom in 2007.

“The average home buyer pays £12,693 in stamp duty in total as they move up the housing ladder.

“This average, however, disguises substantial regional differences with homemovers, with those in Greater London paying over £40,000.

“Escalating stamp duty payments have contributed to significant increases in moving costs in recent years.”

The highest overall stamp duty bills are faced by buyers in London and the South East.

In Londo, homebuyers pay a total of £40,576, 320% more than the average for England and Wales, while in the South East the overall bill is £20,133.

The lowest bills are in the North (£4,212) and Wales (£4,489).

More than three quarters (78%) of first time buyers pay stamp duty, up from 47% in 2001.

 

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