An interesting new report from Lloyds Bank has revealed that property owners spend an average of £12,693 on stamp duty throughout their lifetime.
Homebuyers in England and Wales paid an eye-watering £8.3bn in stamp duty during 2016. This was £1.2bn more than in September 2015, reversing the £571m decline seen between 2014 and 2015.
Stamp Duty Bills
Unsurprisingly, owners in London and the South East pay the highest overall stamp duty bills. In London, property owners pay an average of £40,576 – 320% more than the average for England and Wales. In the South East, the overall bill stands at £20,133.
On the other hand, the lowest bills are in the North and Wales, where bills stand at £4,212 and £4,489 respectively.
Further findings from the report show that the proportion of first-time buyers paying stamp duty has increased in the last 16 years, from 47% in 2001 to 78% in 2017. In Greater London, 100% of first-time buyers are faced with paying stamp duty, in comparison to 98% in the South East.
This figure is likely to be higher for buy-to-let investors, given the 3% stamp duty surcharge implemented in April 2016.
Andrew Mason, Mortgage Products Director, noted: ‘Rising house prices have caused stamp duty payments to continue to increase despite the reforms that came into effect from December 2014. As a result, the £8.3 billion raised in stamp duty in 2016 was more than £2 billion higher than at the peak of the last housing boom in 2007.’
‘The average home buyer pays £12,693 in stamp duty in total as they move up the housing ladder. This average, however, disguises substantial regional differences with homemovers, with those in Greater London paying over £40,000. Escalating stamp duty payments have contributed to significant increases in moving costs in recent years,’ he added.