Treasury raked in £1.4BILLION in stamp duty in March as home buyers raced to beat hike

Daily Mail​

23-04-2025

Homebuyers rushed to complete their property purchases in March ahead of stamp duty going up on 1 April, new figures have revealed.
The Treasury raked in a collective £1.4billion in stamp duty receipts in March, according to analysis of His Majesty's Revenue and Customs data by Coventry Building Society.
It was a £357million increase on the previous month, and a £544million (63 per cent) increase on March 2024.
This was the final month where homebuyers could benefit from the reduced stamp duty thresholds.
From 1 April the nil rate thresholds dropped from £250,000 to £125,000 for home movers – taking the tax bill on an average-priced home in England from £2,082 to £4,582.
First time buyer relief dropped from £425,000 to £300,000.
The average first time buyer home in London costs £477,695, meaning the stamp duty bill for a typical first time buyer in the capital shot from £2,634 to £8,884, according to Coventry.
So far this year, homebuyers have paid £3.3billion in property taxes.
The thresholds are now at levels which were originally set in 2014, when the average house price in England was £191,986, compared to £291,640.
The average tax bill was £1,340 in 2014, compared to £4,582 today, by Coventry's estimates.
Stamp duty was temporarily reduced in 2022 as part of the then-Conservative government's growth plan.
'March was always going to be a busy month for homebuyers, with people rushing to complete before the stamp duty cliff edge,' said Jonathan Stinton, head of mortgage relations at Coventry Building Society.
'Now the deadline has passed, many will be facing thousands more in upfront costs – which can be a big hit when people are already juggling deposits, legal fees, and the cost of setting up a home.
'These kinds of changes don't just affect individual buyers – they can shift the market as a whole.
'Some might delay moving altogether, while others could be priced out of areas where the average house price is above the threshold.
'It raises the question about whether our property tax system is keeping pace with today's housing market – where prices have surged and tax bills rocketed as a result.'
What will stamp duty changes mean for the market?
Looking ahead, some experts think the stamp duty stampede will give way to a lull.
This happened in July 2021 after the previous stamp duty holiday, which was in place during the pandemic, began to be phased out.
This resulted in average house prices falling by 4.7 per cent in one month from £242,777 to £231,386, according to Land Registry data, a dive of more than £10,000.
The stamp duty holiday was fully phased out on 30 September 2021, which resulted in another monthly fall of 2.5 per cent in October.
Jonathan Hopper, chief executive of buying agent, Garrington Property Finders, thinks we are likely to see the tax take fall over the coming months.
'The £1.4billion paid into Government coffers in March could prove a high water mark for stamp duty receipts, and this figure may not be beaten for some time to come,' said Hopper.
'In an ironic twist, the Chancellor's decision to increase the tax burden on thousands of homebuyers may end up delivering less revenue for the Treasury, not more - making this tax grab less than a stellar success.'
'[The stamp duty reduction} created a distorting effect in the market, in which some prospective buyers brought forward their purchase in order to save thousands in tax.'
Hopper is now expecting to see activity drop off as buyers adjust to higher stamp duty costs.
The number of prospective buyers contacting estate agents fell in March.
'With those transactions now complete, some parts of the country are facing a "morning after" effect in which buyers are suddenly thinner on the ground.
'In fact, the party was already winding down during the final weeks of the stamp duty surge.
'Looking ahead, the market is once again being driven by the forces of supply and demand.
'With the supply of homes for sale increasing each month, those planning a move are often spoilt for choice.
'With high levels of supply likely to keep price rises modest and mortgage lenders reducing the cost of borrowing in recent weeks, homes could become steadily more affordable in coming months.'
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