Homebuyers paid £12.3bn in stamp duty between January and October as uncertainty builds ahead of next week’s Autumn Budget.
Coventry Building Society’s analysis of the latest HMRC figures shows stamp duty receipts have risen 21% on the same period last year, when homebuyers paid £10.2bn. The release of the data comes as the housing market waits to see whether the chancellor will make significant changes to property taxation in the Autumn Budget on 26 November.
October recorded £1.5bn in stamp duty payments — the highest monthly total this year. The peak follows months of heightened uncertainty among buyers and sellers, many of whom are now weighing up whether to complete transactions before or after any reforms are announced.
Speculation over a major overhaul of stamp duty first surfaced on 18 August, including suggestions the levy could be scrapped and replaced with a new tax paid by sellers of homes valued at more than £500,000. No details have been confirmed, leaving households and the property industry guessing about the direction of policy.
MARKET LEFT IN LIMBO
Jonathan Stinton, head of mortgage relations at Coventry Building Society, said buyers and sellers have been left grappling with uncertainty for too long. Stinton said: “The market is long overdue some clarity. 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.”
He added: “For three months buyers and sellers have been left unsure what changes might be coming and if they’ll win or lose. Buyers might save thousands, but sellers might have to pay thousands.”
Stinton said the potential reforms could represent a significant shift and that people are “waiting with bated breath to see where they stand”.
He also warned that shifting the tax burden from buyers to sellers would not be straightforward. Stinton said: “Shifting the burden from buyers to sellers would remove one of the biggest barriers to owning a home – but it’s not without its problems.”
“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 it supports buyers, keeps sellers in the market, and helps the housing market keep moving.”
WAITING FOR WEDNESDAY
With stamp duty now a central focus of debate, the Autumn Budget is expected to be closely watched across the sector. The government has given no indication of whether the tax will be amended, replaced or left untouched, but industry figures fear prolonged uncertainty could dampen activity at a time when the market is already sensitive to shifts in sentiment.
Until the chancellor delivers his statement next Wednesday, the property market remains in a holding pattern — and stamp duty remains one of the most contentious elements of the current system.
