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UK Housing News

UK Homebuyers Paid £13 Billion in Stamp Duty in 2024, with Forecasts Reaching £18.1 Billion by 2030

The UK sees 10% rise in Stamp Duty receipts from 2023 as buyers rush to beat April threshold changes

 

David Hannah, Group Chairman of Cornerstone Tax, explores key measures to address the UK’s affordability crisis, as 26% of Brits cite Stamp Duty costs as a barrier to homeownership

Analysis conducted by the Coventry Building Society has revealed that UK homebuyers paid £13 billion in Stamp Duty last year, marking a 10% increase from 2023. This surge reflects the trends of rising property transactions, increased rates on second properties and buyers rushing to complete purchases before Stamp Duty thresholds tighten in April. The Office for Budget Responsibility forecasts that Stamp Duty receipts will climb to £18.1 billion by 2030 - a near 40% increase from 2024, raising concerns about affordability and market activity. David Hannah, Group Chairman of Cornerstone Tax, the UK's leading Stamp Duty advisory firm, highlights that these figures underscore the need for the government to address broader housing affordability issues, which continue to strain the market.

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Changes taking effect from 1 April 2025 to Stamp Duty thresholds will revert to pre-2022 levels, with the minimum purchase price subject to the tax falling from £250,000 to £125,000. First-time buyers will also face steeper costs, as the tax-free threshold drops from £425,000 to £300,000. Buy-to-let investors and second-home buyers are also feeling the squeeze, with surcharges increasing from 3% to 5% since late 2024. The changes to stamp duty pose significant challenges particularly for buyers in higher-priced regions states David Hannah, potentially slowing demand in these areas. While the market has shown resilience, its future stability will largely depend on how these tax adjustments and broader economic factors play out in the months ahead.

According to David Hannah, the UK government has missed key opportunities to address housing affordability. These include raising the second home surcharge to 5%, failing to reinstate Multiple Dwellings Relief, and planning to reduce Stamp Duty thresholds in April. Exclusive data from Cornerstone Tax highlights the impact, with 26% of Brits unable to purchase property due to unaffordable Stamp Duty costs. Meanwhile, 15% of landlords are considering selling due to rising expenses, and 18% of prospective buy-to-let landlords have been dissuaded by increasingly complex regulations.

Group Chairman of Cornerstone Tax, David Hannah comments:

 

“This year, the government​must urgently recognise the ever-pressing need for drastic changes to the housing market. The previous government's decision to abolish Multiple Dwellings Relief (MDR) was beyond counterproductive and will result in fewer new homes being built, with a significant drop in both domestic and overseas investment into housing delivery.

 

“By removing a critical tax break such as MDR,​the government's refusal to reverse this policy undermines the build-to-rent sector, which relies heavily on such incentives to maintain and expand the housing supply. Furthermore, the increase in the second home surcharge and Stamp Duty thresholds reforms will not only reduce the stock of homes in the UK, but will make it harder for first-time buyers to get onto the property ladder.

"New policies need to promote affordability, accessibility and support for businesses building in Britain.​The​government​must now listen to property firms and industry stakeholders to solve this vitally discouraging situation for Brits, otherwise this crisis will continue to cause chaos for years to come."

David Hannah, Group Chairman
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