Receipts from Stamp Duty Land Tax have soared as house prices continue to rise – leading one critic to say that the cost of home ownership has become ‘unreal’.
HMRC figures show that the estimated SDLT receipts for the third quarter of 2017 were up 23% year-on-year to £2.6bn.
This represented 251,000 residential transactions, up 7% on the third quarter of 2016.
The number of residential transactions liable for Stamp Duty increased across all price bands.
Stamp Duty from purchases with a transaction value under £250,000 in the third quarter were up 2% year-on-year to 129,800, while those between £250,000 and £500,000 were 11% higher at 89,000.
The number of liable transactions over £500,000 also increased, with 26,700 up to £1m and 5,500 above £1m.
Of the total 251,000 sales liable to Stamp Duty, 65,300 were for additional properties, accounting for £1.09bn of the quarterly total.
There were 4,700 refunds for those who have disposed of a former main property within 36 months of making the additional purchase, up from 4,000 in the previous quarter.
Commenting on the figures, Andy Somerville, director of conveyancing software provider Search Acumen, claimed the cost of home ownership has “departed the realm of reality”.
He said: “The figures highlight the double-edged sword of the UK property sector.
“Market conditions are pushing up house prices further and further, which in turn means buyers are facing higher Stamp Duty bills.
“As we look ahead to the Autumn Budget, rumours of Stamp Duty reform are causing great excitement amongst the industry. However, to view Stamp Duty reform as the single solution to the nation’s housing problems is both simplistic and problematic.
“The Government needs to consider all factors prohibiting home ownership. Failing to do so means the UK could soon risk losing its status as a nation of home owners.”
Despite the rise in the take from Stamp Duty, Jeremy Duncombe, director at the Legal & General Mortgage Club, is still hopeful of reform.
He said: “Until the Government addresses Stamp Duty’s role in the housing market, this tax will continue to be a barrier for thousands of people on the housing ladder, whether that be a bottleneck for hopeful younger buyers or a deterrent for those looking to downsize in later life.
“If the Chancellor were to scrap this tax for first- and last-time buyers in the Budget, this would help affordability for new home owners and free up existing stock for all.”
I would be amazed though if HMRC revenue does not decrease in 2018 as the already slow housing market in the South East takes effect on the rest of the country.
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“…as the already slow housing market in the South East takes effect on the rest of the country.”
You might for once find that “the rest of the country” can hold its’ own, industryview17…
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They will have to find money from somewhere ..
they are about to lose a billion in tax from tenants getting a free service and with the likes of purplebricks spending £1000 on every instruction to make £800, there will be no tax receipts from agents soon either…
Only people winning from our industry at moment is google adwords…and they’re tax goes on staff bonuses in silicon valley.
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The Conservatives have become stamp duty junkies. It’s as if the Chancellor needs to stick the needle in regularly for a fix of SDLT to make himself feel better….
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