Three in 10 homes to suffer Stamp Duty hike
While Stamp Duty hits London and the South East particularly hard, analysis of the data shows significant increases in the numbers paying all rates across the entire country.
Ben Thompson, managing director of Legal & General Mortgage Club, said: “The Government is continuing its attempts at boosting the housing market through schemes such as Help to Buy. However, Stamp Duty continues to be enforced and remains a high barrier for many entering the market or seeking to move on.
“It is a large amount of money to raise for those who want to become homeowners and the levy is particularly harsh for those ‘second steppers’ wishing to move on to their next home.
“We should be doing all we can to make the market move smoothly and removing stamp duty would seem a logical step toward doing this.”
Savills Research found four in every five homes sold in 2012-13 will be subject to Stamp Duty by 2017-18. At least half of all homes will be subject in every region of England and Wales.
Other key findings included:
Two in every five homes sold in 2012-13 will be subject to rates of Stamp Duty at 3% or more with bills of at least £7,500 each.
97,429 of the 311,089 homes which paid Stamp Duty of 1% in 2012-13 will be subject to the 3% rate by 2017-18. Their average bill was £2,319 in 2012-13. By 2017-18, the average bill will rise to £8,445, nearly four times higher.
220,593 of the 725,602 homes which sold in 2012-13 will be subject to a higher rate of Stamp Duty by 2017-18 than was paid in 2012-13. This is equivalent to three in ten homes.
In 306 of the 347 local authority areas in England and Wales, at least half of all homes sold in 2012-13 will be subject to Stamp Duty by 2017-18.
In 164 local authority areas in England and Wales, at least 9 in every 10 homes sold in 2012-13 will be subject to Stamp Duty by 2017-18.