£3.8bn pounds has been spent on stamp duty for additional properties in the first three quarters of the year, according to Coventry Building Society.
Additional properties, such as buy to lets and second homes, are subject to an additional 3% Stamp Duty Land Tax charge.
The average stamp duty paid on each additional property during this period was £20,961, while the average for the same period last year was an estimated £13,903 – this figure was impacted by the stamp duty holiday.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “A five-figure stamp duty bill is a very real burden for those looking to invest in additional property.
“It takes away money which could, for example, be invested in energy efficient measures, which are going to become unavoidable if the government wants to meet their ambition of having all homes rated EPC C or above by 2035.
“Landlords may have an even tighter deadline to meet, with the proposals giving them until 2025 to get their newly rented properties rated EPC C or above.
“It leaves many of them facing considerable costs, which might be especially difficult to manage after paying an additional 3% tax bill.
Stinton added: “The recent amendments to stamp duty didn’t include any support for buyers who commit to making their property more energy efficient, which seems like a missed opportunity to incentivise improvements to EPC ratings.
“COP27 overlapping next week’s budget seems like a perfect time for the government to announce plans to incentivise energy efficiency.
“They need to outline a strategy which makes the EPC target financially appealing for people, rather than an extra cost they’re soon going to be forced to bear.”
He concluded: “A restructuring of stamp duty which encourages people to make green home improvements seems like the obvious solution.”
