Coventry Building Society has called for long-term reform after homebuyers paid £955m in Stamp Duty in June, according to analysis of HMRC figures.
Since January, homebuyers paid £5.4bn, a 28% (£2.1bn) reduction from the £7.5bn in Stamp Duty receipts throughout the same period last year.
This was be attributed to a lower number of property transactions and temporary changes in thresholds.
Coventry said the current tax regime offers one-time support for first-time buyers, but does little to help other types of borrowers – such as downsizers – and could therefore be a deterrent to moving.
The Stamp Duty for a home mover, buying an average priced home in England today, would be £2,786. In London, the bill on an average priced home jumps to £14,184.
Jonathan Stinton (pictured), head of intermediary relationships at Coventry Building Society, said: “The one-size-fits-all approach to Stamp Duty could be keeping people from moving to a property which is right for them.
“People who have recently separated could be struggling to buy a place on their own, empty-nesters could be hit with a large tax bill for downsizing, and even first time buyers could miss out on their relief if they are buying jointly with a non-first time buyer.”
He continued: “The tax regime should be more considerate of the fact that people may need to go both up and down the ladder throughout their lifetime, so it needs to become less of a deterrent to move.
“Changing the thresholds has always been the go-to solution, and it’s been welcome news for buyers in the past, but today’s bills are often eye-watering and a thorough review with more focus on supporting people throughout every stage of homeownership is what’s really needed.”
