New analysis from Coventry Building Society has revealed that Stamp Duty on an average-priced property in London is now 47 times higher than the bill for an average-priced home in the East Midlands.
This is despite the fact that the average property price in London is only 2.12 times higher. The regional discrepancies highlight a stark North/South divide in property tax bills, which is considered to be unfair and disproportionate to amounts paid for homes.
The regional breakdown of average house prices and Stamp Duty for each area is as follows: the North East, North West, and Yorkshire & The Humber will not pay any Stamp Duty until March 2025. East Midlands and West Midlands have an average house price of £256,159 and £256,206, respectively, with Stamp Duty of £307 and £310.
The East of England has an average house price of £363,779, with Stamp Duty of £5,688, while London has an average house price of £543,099, with Stamp Duty of £14,654.
The South East and South West have average house prices of £404,229 and £330,601, respectively, with Stamp Duty of £7,711 and £4,030.
The temporary Stamp Duty thresholds introduced in September reduced the Stamp Duty bill on an average-priced home in England from £5,767 to £3,303, but this is still more than double the £1,566 it was in December 2014 when the previous thresholds were set.
The new analysis also compared how Stamp Duty on an average-priced property has altered in each region from December 2014 until now.
The results showed a clear North/South divide, with regions in the top half of the country paying less Stamp Duty now while regions in the lower half pay more.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, has called for the Chancellor to address the “unfair” Stamp Duty in the upcoming Budget on 15 March.
Stinton stated that homebuyers are not being treated equally, and that a system where people can pay up to 47 times more tax than others on something which is only twice as valuable is clearly flawed.
Stinton added that a lot more work needs to be done to ensure homebuyers are not hit with a bill that is disproportionately high and unfair.
