Analysis of HMRC statistics by Coventry Building Society has found that the stamp duty surcharge for landlords and people buying second homes netted the Treasury £1.5bn in the last quarter of 2024.

This represented a 31% increase from the previous quarter.

The major increase in tax receipts coincides with the Chancellor announcing an increase to the surcharge for second property purchases, from 3% to 5%, in the Autumn Budget on 30 October.

The Coventry’s analysis revealed more than 30,000 first time buyers paid stamp duty last year, despite the nil-rate thresholds being temporarily extended.

First-time buyers currently pay stamp duty if their home costs more than £425,000, which is set to drop to £300,000 in just a few weeks’ time.

The average first time buyer home in London is £444,548, meaning the stamp duty on an average priced first time buyer home in London will rise dramatically from £972 to £7,222 in April.

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said:
“There’s a balance the Treasury needs to strike between collecting more tax receipts and keeping the property market moving.

“Since the Autumn Budget it’s been landlords who have been squeezed harder by the taxman. But the real sting in the stamp duty tail is the end to the temporary thresholds in April.

“Homebuyers might not be fully aware of how much these changes will eat into their funds from April. This is especially true for first time buyers in more expensive parts of the country where the steep hike to the tax bill could derail plans to buy a first home.”