Homebuyers face ‘hefty increase’ as stamp duty to jump by 110%, Coventry Building Society warns
Homebuyers are facing a staggering 110 per cent increase in stamp duty payments by 2030, according to new analysis from Coventry Building Society.
The research, based on Office for Budget Responsibility (OBR) forecasts, reveals stamp duty receipts will surge from £8.6billion in 2023 to £18.1billion by the end of the decade.
The findings highlight mounting pressure on homebuyers as the Treasury’s take from property transactions is set to more than double over the next six years.
The surge in stamp duty far outpaces the projected 41 per cent growth in residential property transactions expected by 2030.
House prices are forecast to rise by 15 per cent over the next six years, according to OBR predictions.
The combination of more homes being purchased at higher prices, alongside falling thresholds, will fuel the dramatic increase in stamp duty receipts.
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Coventry Building Society is sounding the alarm over hikes to stamp duty
PA
The tax burden is set to catch more buyers as thresholds fall, while property values continue their upward trajectory.
Landlords and holiday home buyers face an additional financial squeeze, with an extra surcharge stacked on top of their stamp duty bills.
Last month’s Budget saw the stamp duty surcharge on additional properties increase from three per cent to five per cent.
This overnight change meant buyers of average-priced properties in England as an additional home faced a tax hike of £6,192.
Further changes are set for April 1 next year, when the nil-rate threshold for home movers will drop from £250,000 to £125,000.
First-time buyers will also be affected, with their nil-rate threshold decreasing from £425,000 to £300,000.
The changes will impact buyers across the market, from those purchasing their first home to those adding to their property portfolio.
Jonathan Stinton, the head of Mortgage Relations at Coventry Building Society, warned of the implications of these rising costs.
Britons could end losing more of their hard-earned cash to stamp duty
GETTY
“The amount homebuyers pay in Stamp Duty is set to double by 2030 – that means a pretty hefty increase for anyone looking to buy a home over the next few years,” he said.
He noted that landlords have already been impacted by the immediate introduction of the five per cent surcharge. Stinton cautioned about the broader implications for the property market.
“These hikes are beneficial to the Treasury, but the balance needs to be just right so people aren’t dissuaded from buying homes,” he said.
“The health of the housing market is dependent on people being able to buy and sell fairly easily, which could be impacted if the tax burden becomes too costly to bear.”
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