ESG Telegraph
  • Home
  • Latest News
  • Environment
  • Companies
  • Investors
  • Governance
  • Markets
  • Social
  • Regulators
  • Sustainable Finance
Featured Posts
    • Companies
    WWE: body-slammed boss dives out as new champ grapples sale rumours
    • August 19, 2022
    • Markets
    Net zero targets: Ask what you can do for your country . . . 
    • August 19, 2022
    • Latest News
    UK health body calls for upgrade to sewage system as beaches close
    • August 19, 2022
    • Companies
    How Tiger Global withdrew its claws when the tech bubble burst
    • August 19, 2022
    • Markets
    More smelters face threat of closure as Europe enters a power-starved winter
    • August 19, 2022
Featured Categories
Belarussia
View Posts
Companies
View Posts
Energy
View Posts
Environment
View Posts
Food
View Posts
Governance
View Posts
Health
View Posts
Investors
View Posts
Latest News
View Posts
Markets
View Posts
Potash
View Posts
Regulators
View Posts
Russsia
View Posts
Social
View Posts
Supply Chain
View Posts
Sustainable Finance
View Posts
Technology
View Posts
Uncategorized
View Posts
ESG Telegraph ESG Telegraph
7K
9K
4K
1K
ESG Telegraph ESG Telegraph
  • Home
  • Latest News
  • Environment
  • Companies
  • Investors
  • Governance
  • Markets
  • Social
  • Regulators
  • Sustainable Finance
  • Companies

Stamp duty receipts hit record high after tax holiday ends

  • February 4, 2022
  • Staff
Total
0
Shares
0
0
0

Home buyers paid more stamp duty in the last three months of 2021 than in any quarter on record, sending nearly £3bn to the Treasury and underlining the feverish demand in the housing market at the end of last year.

The quarter was the first in which the government was able to reap the full benefits of a pandemic boom in the housing market, having seen receipts fall during a stamp duty holiday in England and Northern Ireland from July 2020 to September 2021.

The record £2.95bn in stamp duty receipts, published on Friday, came in spite of some home buyers having rushed to complete their purchases in the previous quarter to clinch savings before the end of the holiday.

Transaction levels in the fourth quarter were 10 per cent down on the previous three months and 13 per cent down on the fourth quarter of 2020. But after the stamp duty holiday ended, 73,000 home sales once again incurred the tax — a 66 per cent rise in transactions bearing stamp duty compared with a year earlier, according to calculations by estate agent Savills.

Stamp duty receipts for October to December were £348mn up on the previous quarterly record of £2.6bn in the third quarter of 2017. The takings were also fuelled by robust demand for more expensive homes, which incur higher levels of stamp duty.

Lucian Cook, Savills residential research director, said: “Recent residential receipts have been supported by strong activity at the top end of the market.”

The number of sales of homes priced at over £1mn was 36 per cent higher than in the fourth quarter of 2019. The stamp duty charge on a £2mn home is £153,750; or £213,750 if bought as a second home or buy-to-let property.

“Transaction levels have stood up much more strongly in the higher price bands where people have been perhaps less concerned about the cost of living squeeze or the prospect of interest rates rising and where they’ve probably had a bit more equity at their disposal to continue to act on that desire to find more space,” Cook said.

House prices are another factor. These have risen sharply over the pandemic, pushing more homes into higher brackets of stamp duty, as people sought lockdown-friendly homes with more outside space or properties better suited to homeworking.

While house prices have continued rising into January, according to figures this week from Nationwide, economists and housing market experts predicted the market frenzy will abate this year under the influence of rising interest rates and stretched affordability.

Robert Gardner, chief economist at Nationwide, said: “House price growth has outstripped earnings growth by a wide margin since the pandemic struck and, as a result, housing affordability has become less favourable . . . Household finances are also coming under pressure from sharp increases in the cost of living.”

The lender pointed to the difficulties facing younger buyers, for whom a 10 per cent deposit on the average first-time buyer home had now reached a record high of 56 per cent of total gross annual earnings.

“I think we’re going to look back at this as a high water mark in terms of stamp duty receipts,” said Cook.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
You May Also Like
Read More
  • Companies

WWE: body-slammed boss dives out as new champ grapples sale rumours

  • Staff
  • August 19, 2022
Read More
  • Companies

How Tiger Global withdrew its claws when the tech bubble burst

  • Staff
  • August 19, 2022
Read More
  • Companies

Dating apps should spark love across the political divide

  • Staff
  • August 19, 2022
Read More
  • Companies

DD and Marky Mark walk into a gym . . . 

  • Staff
  • August 19, 2022
Read More
  • Companies

Tensions with Moscow test Latvia’s welcome for Russian media exiles

  • Staff
  • August 19, 2022
Read More
  • Companies

EU braced for legal challenges to rules designed to tackle Big Tech

  • Staff
  • August 19, 2022
Read More
  • Companies

Soaring rental car costs make taxis a better travel option

  • Staff
  • August 19, 2022
Read More
  • Companies

China funds Huawei’s Solomon Islands deal in sign of deepening ties

  • Staff
  • August 19, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Featured Posts
  • 1
    WWE: body-slammed boss dives out as new champ grapples sale rumours
    • August 19, 2022
  • 2
    Net zero targets: Ask what you can do for your country . . . 
    • August 19, 2022
  • 3
    UK health body calls for upgrade to sewage system as beaches close
    • August 19, 2022
  • 4
    How Tiger Global withdrew its claws when the tech bubble burst
    • August 19, 2022
  • 5
    More smelters face threat of closure as Europe enters a power-starved winter
    • August 19, 2022
Recent Posts
  • Italy election frontrunner Giorgia Meloni says she will not put Covid funds at risk
    • August 19, 2022
  • Dating apps should spark love across the political divide
    • August 19, 2022
  • FT Cryptofinance: Bitcoin needs a story to sell
    • August 19, 2022

Sign Up for Our Newsletters

Subscribe now to our newsletter

ESG Telegraph
  • Home
  • Privacy Policy
  • Guest Post
  • Contact

Input your search keywords and press Enter.