Homebuyers paid £9.3bn in Stamp Duty between January and August this year, according to Coventry Building Society’s analysis of the latest HMRC statistics.
That’s a 20.6% increase on the £7.7bn paid over the same period last year.
In August, homebuyers paid £1.3bn, compared to £1.4bn in July – this could have been the yearly peak for the tax.
Speculation about a major shake-up to property tax was first reported on 18th August, with suggestions that Stamp Duty could be scrapped in the Autumn Budget and replaced with a new property tax for sellers on homes worth more than £500,000.
This week, reports have also suggested that the Government is considering plans to allow homebuyers to pay Stamp Duty in instalments – spreading the cost over several years rather than paying it all upfront.
While that could ease the immediate hit for buyers, it could add another layer of uncertainty that could prompt people to delay their move.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Nobody wants to be the last one to pay the old tax.
“If people think they could save thousands under a new system, or even spread the cost over time, some may choose to hold off buying until there’s more clarity.
“The idea of shifting the burden from buyers to sellers, or allowing staggered payments, would be a significant shake-up, and for many buyers it would remove one of the biggest barriers to owning a home.
“But speculation can make the housing market hold its breath for a minute while people wait to see what happens.”
Stinton added: “Any reform needs to be carefully thought through to avoid any unintended consequences. Passing the tax to sellers could make people at the top of the chain think twice about moving, while staggered repayments could affect how much people can borrow.
“Reform has to strike the right balance so that it supports buyers, keeps sellers in the market, and helps the housing market keep moving.”
