Homebuyers paid £846m in Stamp Duty in February, marking an increase of £19m since January, according to an analysis of HM Revenue and Customs (HMRC) figures by Coventry Building Society.
Homebuyers are expected to pay a record-breaking £17.3bn in Stamp Duty this tax year, but the figure is set to drop by an estimated £4.7bn next year due to temporary changes to thresholds and a predicted decline in property transactions.
The Spring Budget did not address Stamp Duty, and the current thresholds will remain in place until 31st March 2025.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, argued that the Chancellor missed an opportunity by not tackling Stamp Duty in the Spring Budget.
Stinton said: “The Chancellor missed a trick in the Spring Budget by not touching Stamp Duty. We think it’s time for a wider more creative reform to Stamp Duty – such as incentivising energy efficient home improvements – as just one of the ways the Government should be helping homebuyers. This would also begin to align policy around attaining Net Zero by 2050.”
Stinton also noted that the current thresholds are inadequate, adding: “The current thresholds aren’t doing enough; they haven’t moved in line with house price inflation, the bill is disproportionately high in some areas of the country, and they’re not delivering the changes to the housing market that are clearly needed.”
