Recent research highlights that homebuyers have paid a staggering £8.8bn in Stamp Duty this year, with £1.1bn disbursed in September alone.
- With pending budgetary decisions, Coventry Building Society has calculated potential Stamp Duty impacts across regions if current thresholds expire.
- Notably, housing costs above £250,000 presently incur Stamp Duty, with this threshold set to halve by 31st March 2025.
- Potential changes could significantly raise tax burdens for homebuyers, nearly doubling from £2,978 to £5,478 on average properties.
- Concern arises over market distortion and unpreparedness among buyers if government inaction continues regarding Stamp Duty reforms.
Research conducted by Coventry Building Society has shed light on the significant amount paid by homebuyers in Stamp Duty this year, totalling £8.8bn, with September alone accounting for £1.1bn. The figures underscore the importance of the upcoming budgetary decisions by the Chancellor, as any changes in the Stamp Duty thresholds could have profound implications for the housing market.
Coventry Building Society has meticulously calculated the varying impacts of Stamp Duty across different regions in England should the current temporary thresholds not be extended in the forthcoming Budget discussions. This analysis highlights potential financial strain for buyers if changes are enacted, urging a regional perspective on the implications.
Currently, homebuyers face Stamp Duty if their property costs exceed £250,000, a threshold set to drop to £125,000 after 31st March 2025. This impending reduction could effectively double the average tax bill from £2,978 to £5,478, a scenario that necessitates urgent attention.
There is significant concern that a lack of government intervention might result in either a rush to complete transactions before the March deadline or an increase in tax liability for unprepared buyers. This potential oversight could lead to market distortion, unsettling the equilibrium of property transactions.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, emphasises the looming risk: “The deadline for these thresholds was given to us back in November 2022, but I think we all secretly hoped a long-term plan for Stamp Duty would be established in the meantime.” His remarks reflect the broader uncertainty pervading the industry as stakeholders await crucial decisions.
Continued inaction on Stamp Duty reforms could profoundly impact homebuyers and market stability.
