First and second quarter figures for Stamp Duty Land Tax (SDLT) receipts were released last week, showing that – overall – transactions that triggered SDLT on residential properties increased from Q1 to Q2 this year, having picked up in every category with the exception of transactions of £2 million and over.
With that in mind, independent lettings and sales agent Benham and Reeves looked into regional Stamp Duty data from 2008-2018 and the result is a revealing and rather stark contrast between that paid by Londoners and everywhere else.
For example, while the total number of transactions on residential property in London (125,000) accounted for 11.3% of the overall total (1,106,000), SDLT receipts in the capital at £3.6 billion made up a disproportionate 39.2% of all SDLT receipts for residential property (£9.2 billion). And although the estimated residential property value of properties sold in the capital (£73.1 billion) represented 23.2% of the residential total for all regions (£315 billion), the receipts were again disproportionate relative to other regions’ sold value. A mismatch. An imbalance.
In the South East, the total number of transactions (178,000) accounted for 16.1% of the overall total and Stamp Duty receipts (£1.9 billion) made up 21.5% of all such receipts on residential properties. The estimated residential property value (£64.1 billion) was 20.3% of the residential total for all regions; the figures were much more balanced across the board than in London.
There was also a skew when comparing statistics for London from 2018 to those from 2008; the number of transactions on residential properties dropped from 186,000 to 125,000 – a change of -32.8% – but receipts increased from £1.9 billion to £3.6 billion, which is a rise of 86.4%.
“Stamp Duty is a tax penalty disproportionately aimed at London. Despite representing approximately just 1.3% of England’s landmass, the capital is responsible for one third of all property taxes by way of Stamp Duty!
And this is not just because London is a more expensive part of the country, but also because at higher values the levy is now designed to penalise that sector harder in relative terms.
It’s also a tax on aspiration, choking the upwardly mobile who happen to live where many of the UK’s jobs and transport infrastructure are provided.”
|Location / regions ↓||Number of transactions (thousands)||Estimated property value (£million)||Receipts (£ million)||Number of transactions (thousands)||Estimated property value (£million)||Receipts (£ million)|
|Yorkshire and The Humber||126||19,830||260||100||18,465||310|
|East of England||150||33,950||680||120||38,340||1,025|
|Total – Eng, Wales, N Ireland||1,387||306,970||6,330||1,106||315,060||9,275|
Stamp Duty data collected from Gov.co.uk.
View all posts by Vidhur Mehra