blog

99% of London Homes Liable for Stamp Duty Within 5 Years

Written by Sam Jones on 26 August 2013.

The TaxPayers' Alliance, which is campaigning for reform to the hated duty, said four out of every five homes sold in 2012/13 in England and Wales will be subject to the stamp duty land tax within five years.

It warned that 40% of homes sold by this time will be subject to stamp duty of 3% or more, leaving buyers with a bill of £7,500 or more. Currently, a quarter of all house sales across England and Wales attract the higher 3% rate of stamp duty - originally intended for only the most expensive properties.

The TaxPayers' Alliance claimed 99% of homes in London will be liable for stamp duty in five years' time and in the North West this figure will be three in five.

It predicts the East Midlands will see the fastest increase in the number of homes liable for stamp duty, from around half to just over seven in ten by 2018.

It seems that two in five potential home-buyers will face paying at least £7,500 in "punitive" stamp duty costs by 2018 as house prices rise, the report has warned.

Its findings are based on property price growth forecasts over the next five years by Savills Research.

The Council of Mortgage Lenders estimates that total gross mortgage lending in July increased to £16.6 billion, representing a rise of 12% from £14.8 billion in June and 29% higher that the total of £12.9 billion in July last year. This is the highest monthly estimate for gross lending since October 2008 (£18.6 billion.)

Add comment


Security code
Refresh

Latest News