New research compiled by law technology specialist, Access Legal, analysed the number of properties sold and the average stamp duty paid across the UK’s 100 largest towns and cities during the first six months since the return of pre-pandemic rates, which had been on pause by the government to help boost the property market.
Of the estimated £679 million generated for the Treasury by these 100 locations, around £442 million – or nearly two-thirds of the total – came from London property sales. This was followed by Bristol, where buyers paid £19.1 million and Reading (£9.78 million).
The top five towns and cities that generated the most in Stamp Duty Land Tax were London, Bristol, Reading, Cambridge, and St Albans.
Unsurprisingly, buyers in London contribute the most SDLT, with the average buyer forking out an eye-watering £26,133 on their homes.
They are closely followed by buyers in St Albans and Oxford, paying averages of £21,213 and £18,976 respectively.
The research also reveals a clear North-South divide, with the 10 areas that paid the most total SDLT in the South and the ten towns and cities that paid the lowest on average all in the North of England.
The top five regions where SDLT was lowest are Blackpool, Hartlepool, Bradford, Hull, and Sunderland.
Since the government’s stamp duty holiday ended last September, strong demand for homes and a lack of supply have kept prices high.
It also means that many of those looking to take their first step on the property ladder are now no longer benefitting from the exemption that they normally would, which only applies to properties valued up to £300,000.
First-time buyers in London, St Albans, Oxford, Woking and Bath paid exactly the same amount of duty, on average, as seasoned homeowners, suggesting that only a tiny number qualified for the exemption.
By contrast, buyers in Blackpool pay the least amount of stamp duty, at just £341 for the average transaction, while first-time purchasers there paid nothing.
Mike Connelly, director of conveyancing software provider, Legal Bricks, said: “We all know that buyers pay a premium to live in the South East, especially London, but the figures show just how much they’re paying in stamp duty tax alone compared to people in other parts of the country.
"First-time buyers, in particular, who also have to pay thousands of pounds in SDLT, will see a real dent in their deposits, or have to borrow more on their mortgage to pay it. This suggests that even with the SDLT holiday coming to an end, demand for housing in some parts of the country has continued to be high.”
Claire Flynn, mortgage expert at Mojo Mortgages, adds: “The stamp duty holiday was good news for many, seeing house sales reach record levels, and helping to alleviate some of the financial pressure of buying a property for first-time buyers and existing homeowners.
"While first-time buyers still benefit from an exemption on properties up to £300,000, house prices are currently at record highs which means we’ll likely see a considerable increase in the number of new homeowners paying for stamp duty.
“This will be exacerbated by the end of the help-to-buy scheme in March 2023, which could make it even more difficult for those trying to get their foot on the property ladder in areas such as London, Bristol and Reading where the average cost of a home exceeds the £300,000 exemption threshold.”
