The latest research by London lettings and estate agent, Benham and Reeves, has revealed that, as another financial year comes to a close, it’s Londoners who have paid by far the highest level of Stamp Duty Land Tax over the last year compared to homeowners across the rest of the nation.
Benham and Reeves analysed sold price data from the Land Registry for homes sold over the last 12 months*, calculating the total stamp duty owed on these transactions and how this cost differs across each area of the nation.
The research shows that an estimated £3.657bn has been paid in stamp duty across England over the last 12 months and the vast majority of this total has been footed by London homebuyers.
In fact, an estimated £1.490bn was paid across the London market alone, accounting for 40.7% of the national total.
When it comes to the areas of the property market to have paid the highest stamp duty bill, 17 of the top 20 are located within the capital.
Kensington and Chelsea sits top where an estimated £207m was paid in stamp duty over the last year – that’s 5.6% of the entire national total.
Westminster also accounted for 5% of the national stamp duty bill, with an estimated £183.8m paid over the last 12 months alone.
Wandsworth completes the top three with a stamp duty bill of £108.7m.
Buckinghamshire was home to the highest stamp duty bill outside of the capital at just over £76m, with Bournemouth, Christchurch and Poole (£38m) and Cornwall (£32.7m) the only other areas outside of London to make the top 20.
Director of Benham and Reeves, Marc von Grundherr, commented:
“Stamp duty is an outdated tax grab that acts as nothing more than a thorn in the side of the nation’s homebuyers and one that has remained there due to the greed of a stubborn government intent on taxing our ascent up the property ladder.
Now more than ever, the calls to abolish stamp duty must be heard. In the last year we’ve seen a considerable reduction in buyer market activity as they’ve struggled to overcome the obstacle of higher mortgage rates and it simply isn’t right that they have to also contend with the ever increasing cost of stamp duty to boot.
What’s more, such a punitive tax also acts as a deterrent to investors and can have a big impact on off-plan sales, particularly when coupled with inflation and higher interest rates.
Removing this additional cost would go some way in rejuvenating both existing and new-build market activity and helping to drive buyers back into the fold.”
