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Stamp Duty Costing Homeowners ‘£12,693’ Over Their Lifetimes

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Tue 01 Aug 2017

Stamp Duty Costing Homeowners ‘£12,693’ Over Their Lifetimes

Buying a house using estate agents in Hull and elsewhere is an expensive undertaking, this can certainly not be denied. And something you definitely have to take into account when looking for a new home is the stamp duty that you’ll have to pay on it.

Stamp duty must be paid on property or land over a certain price in England, Wales and Northern Ireland. The current threshold is £125,000 for residential properties and £150,000 for non-residential land and property. You pay it when you buy a freehold or new and existing leasehold property, or if you buy through a shared ownership scheme or are transferred land or property in exchange for payment (such as when you take on a mortgage or purchase a share in a property).

New research from Lloyds Bank has just revealed that the average homeowner will pay £12,693 in stamp duty over their lifetime as they make their way up the housing ladder. Interestingly, the proportion of first-time buyers (FTBs) paying stamp duty has climbed in the last 16 years from 47 per cent in 2001 to 78 per cent in 2017.

Mortgage products director with the bank Andrew Mason said: “Rising house prices have caused stamp duty payments to continue to increase despite the reforms that came into effect from December 2014. As a result, the £8.3 billion raised in stamp duty in 2016 was more than £2 billion higher than at the peak of the last housing boom in 2007.

“The average home buyer pays £12,693 in stamp duty in total as they move up the housing ladder. This average, however, disguises substantial regional differences with home movers, with those in Greater London paying over £40,000. Escalating stamp duty payments have contributed to significant increases in moving costs in recent years.”

Moving costs may well be why nearly one in three Second Steppers – those looking to buy their second home – require financial support from their parents to help them climb the ladder. Further research from Lloyds Bank found that 32 per cent of Second Steppers needed an average of £21,231 from their parents to buy their next house, with 35 per cent saying that without financial support they wouldn’t have been able to have made the move.

But it’s not just mums and dads that are being asked for help. It was also found that grandparents and friends are often turned to for financial assistance in this regard. The price difference between a typical FTB house and a Second Stepper property is £126,000 – although the equity level from the sale of their first property can help reduce this, meaning people need to add less to their existing mortgages in order to climb up the ladder.


Overpaying your mortgage can help you increase your equity, although you could also try saving more each month to help you get the amount you need together.

Thinking of using an estate agent like beercocks to find your next house? Then now could well be the time to start looking for a mortgage