Stamp Duty receipts have soared by 21% to £12.3bn over the past ten months and have raised fears it could make the Chancellor take a closer look at the tax as a potential source of extra revenue, rather than scrapping it.

£1.5bn in October

The analysis, which was carried out by Coventry Building Society using HMRC’s data, reveals that £1.5bn was paid in October alone – the highest monthly total so far this year.

The surge is being driven by the return of higher rates, rather than by any acceleration in market activity. The end of the temporary SDLT relief in April pushed more purchases into the 5% and 10% bands, while the surcharge on second homes and buy-to-let properties increased to 5% in the autumn.

The news comes on top of speculation that Stamp Duty could be replaced by an annual tax of some kind or be moved onto sellers.

Coventry Building Society’s Head of Intermediary Relationships, Jonathan Stinton (pictured), warns that the lack of clarity has already taken a toll.

He says: “The Stamp Duty rumours have been swirling for months, with buyers and sellers being left in limbo. All eyes are going to be on the Chancellor next Wednesday to see if the speculation amounts to anything.”

Any reforms have to strike the right balance so that they support buyers, keep sellers in the market, and help the housing market keep moving.”

He adds that shifting the burden to sellers could have knock-on effects: “Buyers might save thousands, but sellers might have to pay thousands. Passing the tax to sellers could make people at the top of the chain think twice about moving, which in turn limits supply and distorts house prices.

“Any reforms have to strike the right balance so that they support buyers, keep sellers in the market, and help the housing market keep moving.”