Despite the Government’s own admission in last month’s Housing White Paper that the property market was “broken”, tax thresholds will remain at the levels introduced in 2014.
Currently, home buyers are liable for the tax when purchasing a residential property or a plot of land costing more than £125,000, or £40,000 for a second home.
In London, where average asking prices stand at almost £625,000, the total stamp duty payable is an eye-watering £21,250.
Even the duty payable on a starter home costing £350,000 adds £7,500 to the cost of buying.
|Price of property||Stamp duty payable|
|Up to £125,000||Zero|
|The portion from £125,001 to £250,000||2%|
|The portion from £250,001 to £925,000||5%|
|The portion from £925,001 to £1.5 million||10%|
|Anything above £1.5 million||12%|
Nick Leeming, chairman of estate agent Jackson-Stops & Staff, says: “Homeowners are left feeling disheartened and frustrated once again today, as Philip Hammond neglects to address the stamp duty elephant in the room.
“Despite evidence showing the housing market has slowed since the stamp duty reform of December 2014, and the more recent three per cent second home surcharge, the Government is sticking to its guns and refusing to give the nation a break.”
Currently, stamp duty is charged in bands, with zero per cent on the first £125,000 of the purchase price, two per cent between £125,001 and £250,000, five per cent from £250,001 to £925,000, 10 per cent from £925,000 to £1.5 million, and 12 per cent above that.
These thresholds are set to remain in place at least until November, when the Chancellor will unveil a combined Budget and Autumn Statement.