Research from Coventry Building Society shows that homebuyers have paid £9.8bn for the first ten months of the year, based on the latest HMRC figures.
There have also been rumours that there will be stamp duty cuts in the Autumn Statement, which is due to take place tomorrow.
Long-term support
The mutual has said that stamp duty needs to be improved, with one suggestion being that it should provide long-term support rather than temporary relief.
It noted that current stamp duty thresholds mean homebuyers pay stamp duty if their home costs over £250,000, but this will fall to £125,000 in March 2025. This means that tax bill for an average priced home will rise by around £2,500.
Maintain tax thresholds
Another suggestion is to keep tax thresholds in line with the stamp duty bill, noting that the average priced home in England has a stamp duty bill is £2,980, more than double the figure in 2014.
Support for downsizers
The mutual added that there should be more “appropriate support” for downsizers as the current regime doesn’t help people looking to downsize and, in some cases, dissuades people from moving.
First-time buyer relief
An overhaul of first-time buyer relief could also help as the current limit of £425,000 means relief is missed out if first-time buyers are buying jointly.
Regional differences
Regional discrepancies should also be addressed, with those in London buying an average priced home paying £14,279, whereas those in East Midlands face a bill of just £40.
Incentivise EPCs
Coventry Building Society said that stamp duty should be used to incentivise energy efficiency improvements, which could help cut energy bills and improve EPC ratings.
Jonathan Stinton (pictured), head of intermediary relationships at Coventry Building Society, said: “The right changes to stamp duty could make a huge difference to homebuyers; it could not only put money back in their pockets, it could also oil the wheels of the market and make it easier for people to move up and down the ladder throughout their lifetime.
“And tax returns during the stamp duty holiday in 2020 and 2021 proved changes which stimulate the market don’t have to be too costly for the Treasury.”
He added: “The go-to solution has been temporarily changing the thresholds, but there’s a risk that they become out of sync with house prices in a few years, and they don’t address other issues like support for downsizers or the vast regional tax discrepancies.
“A considered review from the Chancellor, rather than a temporary holiday or simplistic cut to rates, would have a greater and longer-lasting benefit to buyers and sellers.”
