Analysis of the latest HMRC data by Coventry Building Society shows stamp duty receipts increased by £357m (34%) from February and by £544m (63%) from March 2024.
The sharp rise reflects buyers completing transactions ahead of the 1st April deadline, when the nil rate threshold for home movers was cut from £250,000 to £125,000 and the first-time buyer relief threshold fell from £425,000 to £300,000.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “March was always going to be a busy month for homebuyers, with people rushing to complete before the stamp duty cliff edge.
“Now the deadline has passed, many will be facing thousands more in upfront costs – which can be a big hit when people are already juggling deposits, legal fees, and the cost of setting up a home.”
“These kinds of changes don’t just affect individual buyers – they can shift the market as a whole. Some might delay moving altogether, while others could be priced out of areas where the average house price is above the threshold.
“It raises the question about whether our property tax system is keeping pace with today’s housing market – where prices have surged and tax bills have rocketed as a result.”
Based on HMRC receipts, homebuyers have paid £3.3bn in property taxes so far this year. Following the threshold changes, the stamp duty bill for the average home in England has risen from £2,082 to £4,582. For a first-time buyer in London purchasing a typical £477,695 property, the cost has surged from £2,634 to £8,884.
The current stamp duty thresholds now match levels last set in 2014. At that time, the average house price in England was £191,986 and the typical stamp duty charge was £1,340.
