A major lender has called on Labour to make Stamp Duty cuts a priority within the next Budget.

Coventry Building Society says homebuyers paid just as much tax this year as 2023, and this is set to rise when Stamp Duty rates are tightened next April.

Tax bill hikes

Analysis of the latest HMRC figures shows homebuyers paid £1 billion in Stamp Duty in June, Coventry says.

So far this year, homebuyers have paid £5.4 billion in Stamp Duty, the same amount homebuyers paid during the same period last year

Homebuyers currently pay the duty if their home costs most than £250,000. In March 2025 this will drop to £125,000 – hiking the tax bill on an average-priced home in England from £2,619 to £5,119.

First time buyers currently pay it if their home costs more than £425,000, which is set to drop to £300,000 in March 2025.

‘Silence isn’t golden’

Jonathan Stinton, Head of Mortgage Relations at Coventry Building Society, says: “The new Government has been fairly mute on Stamp Duty so far, but silence definitely isn’t golden when it could end up costing homebuyers thousands of pounds in extra tax.

“If we don’t hear anything between now and next April those looking to buy an average-priced home will have to fork out an additional £2,500 in property tax.”

Within the next few months, buyers will be increasingly likely to rush through purchases to avoid a hefty tax hike.”

He says the next Budget could be as early as September, and new Chancellor Rachel Reeves (main picture) needs to “set out an ambitious, long-term plan for property tax that will give certainty to anyone thinking of buying or selling a home”.

“Within the next few months, buyers will be increasingly likely to rush through purchases to avoid a hefty tax hike, causing a flurry of activity followed by a sharp drop after the relief has ended.”

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Main picture: BBC NEWS