Homebuyers paid a total of £11.8bn in stamp duty last year, according to Coventry Building Society’s analysis of HMRC figures.
This is a 26.7% fall on the record total of £16.2bn homebuyers paid in 2022.
The drop in tax revenue could be attributed to fewer people buying homes and a temporary extension of nil-rate thresholds for stamp duty. By the end of November, there were already 225,870 fewer transactions in 2023 compared to the same period in 2022.
Homebuyers in England and Northern Ireland currently pay stamp duty if their home costs most than £250,000. In March 2025 this will drop to £125,000 – taking the tax bill on an average priced home in England from £3,018 to £5,518.
There is speculation that changes to stamp duty could be announced as part of the Spring Budget, taking place in March.
Coventry Building Society head of intermediary relationships Jonathan Stinton said: “If ever there was a tax which is ripe for change, it’s stamp duty. For too long, temporary measures have been used when only a permanent solution will do. Fewer people moved home last year, yet homebuyers still spent over £10bn in property tax. That’s an enormous spend, which is only going to increase until real change happens”.
He added: “Applying any short-term thinking won’t build long term confidence and stability in the market. We all saw how the Stamp Duty holiday in 2020 and 2021 boosted the market, but the sudden spike in demand led to distortion and the aftereffects are arguably still lingering now.
“Now is the time for a thorough review of tax on property purchases, taking into consideration some of the issues facing buyers and sellers, which helps support the market in the long term.”
