Nice work if you can get it: Stamp Duty revenue soars by an extra £1.5 billion
Stamp duty revenue generated in England and Wales increased by an incredible £7.7 billion in the year to March – easily beating the 6.2 billion which was raised at the peak of the last housing boom in March 2008. In stark contrast, in the 12 months to March 1999, less than £1 billion was raised.
An increased number of residential property transactions and increased prices are believed to have led to a major rise in Stamp Duty revenues in the 12 months to March 2015, with the average homeowner now spending a massive £10,000 on Stamp Duty as they move up a rung on the housing ladder.
The number of first time buyers paying Stamp Duty has more than doubled over the last 16 years from 32% in 1999 to 66% in 2015. It is believed that in London and the South East of England over nine in ten first time buyers are now paying Stamp Duty on their property purchases.
It isn’t only first time buyers who seem to have been paying an increase in Stamp Duty though. Across the board the number of people paying Stamp Duty has increased by 17% from 68% in 1999 to 85% in 2015.
If you live in London or the South East, you will be more than aware of the expense of cash Stamp Duty. In London home buyers fork out four times more than the average for England and Wales at a staggering £38,600.
At the opposite end of the scale, Stamp Duty costs in Wales, which, at an average of £3,800, are 40% less than the average in England and Wales. Those in the North and the East Midlands (£4,000) and Yorkshire and the Humber pay the next lowest at £4,500.
When considering regional average house prices for first-time-buyers home in 1999, Stamp Duty was only an issue for those in London and the South East. However, by the time these people were ready to climb up the ladder to their next home, the average Stamp Duty for their new home had increased to £2, 283.
It is estimated that Stamp Duty accounts for nearly quarter of the costs of buying a house. The average cost of moving in the UK was around £8, 689 in 2014, 5% higher than £8, 258 in 2013.
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