Stamp duty in London 47 times higher than in East Midlands: Coventry – Mortgage Strategy
Stamp Duty on an average-priced property in London is 47 times higher than an average-priced property in the East Midlands, analysis from Coventry Building Society reveals, highlighting regional discrepancies of the tax.
While the average stamp duty bill in London is currently 47 times higher than in the East Midlands, Coventry’s analysis found that the average property price is only 2.12 times higher.
The society explains that this makes the tax bill disproportionally higher than the amount paid for the home.
In 2014 the stamp duty on an average-priced property in London was 17.6 times higher than an average priced property in the East Midlands.
Coventry indicates that the tax disparity between London and East Midlands has rocketed under the new thresholds.
Stamp duty on an average priced house in London is £14,654 compared to the East Midlands where it is £307.
Those buying an average-priced property in the North East, North West, and Yorkshire and The Humber won’t need to pay any stamp duty before March 2025.
These temporary thresholds, which were introduced in September, reduced the stamp duty bill on an average-priced home in England from £5,767 to £3,303.
However, this is still more than double the £1,566 it was in December 2014 when the previous thresholds were set.
Further analysis compared how stamp duty on an average-priced property has altered in each region from December 2014 until now.
The biggest increase has been seen in London with the stamp duty on an average priced home in December 2014 at £10,145 compared to £14,654 now, representing a £4,509 increase.
This compares to the West Midlands where stamp duty is £395 less now at £310 than what is was in December 2014 at £705.
With a divide between North and South regions, Coventry suggests the new thresholds do not provide an equal benefit to everyone.
Coventry Building Society head of intermediary relationships Jonathan Stinton says: “The Chancellor hasn’t given any hint that he’s going to talk about stamp duty in the Spring Budget, but the numbers show that he needs to. Homebuyers aren’t being treated equally, and that needs to be addressed.”
“A system where people can pay up to 47 times more tax than others – on something which is only twice as valuable – is clearly flawed. A lot more work needs to be done to make sure homebuyers aren’t being hit with a bill which is disproportionately high and unfair.”