UK households face '110 per cent rise' in mandatory bill under Labour

Homebuyers are set to pay 110% more in stamp duty by 2030, with receipts jumping from £8.6bn in 2023 to £18.1bn in 2030. This is according to Coventry Building Society’s analysis of the Office for Budget Responsibility (OBR) forecast.

In the recent Budget the stamp duty surcharge on additional properties was increased from three per cent to five per cent – meaning anyone buying an average-priced property in England as an additional property had an overnight tax hike of £6,192.

Coventry BS warned the rise in stamp duty would be fuelled by higher house prices and a 41% projected growth in residential property transactions over the same period. At the same time, the tax for landlords and people with second homes will add to the bill after the government introduced a higher surcharge in last month’s Budget.

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At the beginning of April 2025, the nil-rate thresholds will drop from £250,000 to £125,000 for home movers, and from £425,000 to £300,000 for first time buyers. Commenting on the latest research Coventry Building Society head of mortgage relations Jonathan Stinton said: “The amount homebuyers pay in stamp duty is set to double by 2030."

Mr Stinton went on, adding: "That means a pretty hefty increase for anyone looking to buy a home over the next few years. Landlords already took the first hit when the 5 per cent surcharge came into effect overnight, and buyers across the board now have to brace themselves for the April cliff edge.”

He added: “These hikes are beneficial to the Treasury, but the balance needs to be just right so people aren’t dissuaded from buying homes. The health of the housing market is dependent on people being able to buy and sell fairly easily, which could be impacted if the tax burden becomes too costly to bear.”