Homebuyers paid over £1bn in Stamp Duty in September, according to Coventry Building Society’s analysis of HMRC figures.
So far this year, homebuyers collectively paid £8.6bn in property tax.
Homebuyers currently pay Stamp Duty if their home costs more than £250,000.
In March 2025 this will drop to £125,000 – taking the tax bill on an average priced home in England from £2,980 to £5,480.
The society’s analysis of Census data revealed at least 24.5 million spare bedrooms in households across England, which it noted could mean a surplus of people who would benefit from downsizing.
Jonathan Stinton (pictured), head of intermediary relationships at Coventry Building Society, said: “There are enough spare bedrooms in England to house every person in London nearly three times over.
“With at least 24 million spare bedrooms across the country, there needs to be more of an incentive to downsize.
“Stamp Duty is an unavoidable upfront cost, which could amount to tens of thousands and thousands of pounds – it’s no surprise potential downsizers could be deterred by the thought of paying a hefty bill, along with the other associated costs, to ultimately end up with something less valuable. There could be many people who feel it just don’t make financial sense to downsize.”
He added: “It’s only going to get worse in seventeen months’ time, when the Stamp Duty thresholds change again and the bill on an average priced home jumps by £2,500.
“It’s clear that a long-term solution needs to be established, one which aims to support buyers who need to move both up and down the ladder.”
