Stamp Duty receipts hit record high of £14.1 billion

UK Stamp Duty Land Tax (SDLT) receipts have reached a record high of £14.1bn in the past year, up 63% from £8.7bn in 2020/21 says ludlowthompson, London’s estate agent.

This is also up 22% on the £11.6bn collected in 2019/20 (when there was no stamp duty holiday).

Stamp Duty bills have risen as the housing market saw record high levels of activity – activity that has been sustained despite the end of the Stamp Duty holiday, which ran between July 2020 and June 2021.

Ludlowthompson says a greater numbers of buyers have also been pushed into higher SDLT brackets because of house price inflation, resulting in the increased tax take. SDLT bands have remained the same for last eight years, despite the price of the average house in the UK rising by 52% in the same period.

The agency says the system should be revised, with brackets adjusted in line with rising house prices. This would make homebuying more affordable, as well as enable prospective buyers to invest more money in home improvements, which would benefit the local economy.

Stephen Ludlow, Chairman at ludlowthompson, says:

“Failure to increase Stamp Duty bands in line with rising house prices means more buyers today are being forced to pay similar levels of tax as those purchasing higher-value properties just a few years ago.

“As we face soaring inflation, reducing the tax burden on people who are looking to purchase a home, will go a considerable way to helping them do so. This could also benefit local economies, as housing transactions are normally accompanied by substantial expenditure on local businesses like builders and decorators as buyers refurbish their new homes.”

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