Homebuyers paid £827m in Stamp Duty in January, according to Coventry Building Society’s analysis of HMRC figures.
This makes the opening month of 2023 the first month since January last year where Stamp Duty receipts were below £1bn.
2022 was a record-breaking year for Stamp Duty, with homebuyers paying £16.2bn, despite the thresholds being amended in September. In the Autumn Statement the Chancellor announced these thresholds will only remain in place until 31 March 2025.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Four months into the new thresholds and homebuyers still spent over £800m on Stamp Duty in January.
“With transaction levels expected to fall this year it’s likely the amount homebuyers collectively spend on Stamp Duty will reduce, but that doesn’t mean homebuyers aren’t individually being hit hard by the tax.
“The new thresholds reduced the tax bill on an average priced home in England from £5,767 to £3,303, which is certainly an improvement but still more than double the £1,566 it was in 2014 when the previous thresholds were set. It shows the thresholds simply haven’t moved in line with house price inflation.
“Linking the thresholds to house price inflation may seem like the obvious way to keep Stamp Duty at a consistent level, even if it doesn’t always seem fair.
“A wider more creative reform to Stamp Duty – such as incentivising energy efficient home improvements – should still be one of the government’s long-term aims.”
