Menu

Editor's Pick

Homebuyers paid over £1bn in stamp duty in May

Homebuyers paid over £1bn in stamp duty in May
Christina Hoghton
Written By:
Christina Hoghton
Posted:
21/06/2024
Updated:
21/06/2024

Homebuyers have paid £4.4bn in stamp duty, the same amount that was paid during the same period last year.

That’s according to Coventry Building Society, which analysed the latest HMRC figures to reveal homebuyers paid £1bn in stamp duty in May alone.

How much does stamp duty cost?

Homebuyers currently pay stamp duty if the property they purchase costs more than £250,000.

In March 2025, this threshold will drop to £125,000 – taking the tax bill on an averagely priced home in England from £2,411 to £4,911.

First-time buyers currently only pay stamp duty if their home costs more than £425,000, which is set to drop to £300,000 in March 2025.

The rates for a single property are below:

  • Up to £250,000 – zero
  • The next £675,000 (the portion from £250,001 to £925,000) – 5%
  • The next £575,000 (the portion from £925,001 to £1.5m) – 10%
  • The remaining amount (the portion above £1.5m) – 12%

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Stamp duty isn’t in all the party manifestos, but it’s certainly going to be near the top of the to-do list for whoever is Chancellor on 5th July.

“In a matter of months, the temporary thresholds will expire and buying a home will become a lot more expensive. As it stands, someone buying an average-priced home in England next April will have to fork out an extra £2,500 to the taxman.

“The ideal opportunity to act will be at the next Budget, which will likely be in September. Leaving it any longer than that will ratchet up the uncertainty and could distort the housing market as buyers and sellers seek to beat the deadline in March.”