Stamp duty payments up 21% year-on-year as attention turns to next week’s Budget

Homebuyers have paid £12.3bn in stamp duty between January and October this year, up 21% from the £10.2bn paid over the same period last year.

The release of the HMRC figures comes as attention turns to next week’s Autumn Budget, where speculation is mounting over whether the Chancellor will make any changes to the way property is taxed.

In October, homebuyers paid £1.5bn – which is the high point of the year so far. This comes among growing uncertainty from buyers and sellers about potential changes to stamp duty, with many now weighing up whether to move before or after any reform is announced in the Budget. 

Speculation about a major shake-up to property tax was first reported in August, with suggestions that stamp duty could be scrapped in the Budget and replaced with a new property tax for those selling a home worth more than £500,000.

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “The market is long overdue some clarity. The stamp duty rumours have been swirling for months with buyers and sellers being left in limbo. All eyes are going to be on the Chancellor next Wednesday to see if the speculation amounts to anything.

“For three months buyers and sellers have been left unsure what changes might be coming and if they’ll win or lose. Buyers might save thousands, but sellers might have to pay thousands. It could be a significant shake up, and people are waiting with bated breath to see where they stand.

“Shifting the burden from buyers to sellers would remove one of the biggest barriers to owning a home - but it’s not without its problems. Passing the tax to sellers could make people at the top of the chain think twice about moving which in turn limits supply and distorts house prices. Any reforms have to strike the right balance so that it supports buyers, keeps sellers in the market, and helps the housing market keep moving.”