Lifetime stamp duty cost hits £12k
Recent research has indicated that an average of £12,693 is paid by homeowners to cover the cost of stamp duty throughout their lifetime.
Conducted by Lloyds Bank, the analysis looked at the average price paid in March 2001, 2009 and 2017, based on the three types of property which buyers will typically purchase as they move up the property ladder.
In March 2001, Stamp Duty for a first-time buyer will have cost around £758, growing to £1,989 for a second stepper semi-detached in March 2009. The research found that for the final detached property, buyers in 2017 could have expected Stamp Duty to reach an average of £9,946.
Commenting on the figures was Andrew Mason. The mortgage products director at Lloyds Bank drew attention to the growth of Stamp Duty, as well as its impact on moving costs in the recent past.
“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 £8.3bn raised in Stamp Duty in 2016 was more than £2bn 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 home movers, with those in Greater London paying over £40,000.
“Escalating Stamp Duty payments have contributed to significant increases in moving costs in recent years.”