Stamp duty holiday pushes 1.8m houses into a higher land tax bracket

Intense market activity over the last 12 months has accelerated house price growth, pushing 1.8m UK properties into a higher stamp duty bracket

The figures released by Zoopla show that nearly 940,000 additional properties now attract some level of stamp duty at 5% should they sell, and an extra 130,000 will command some level of stamp duty at 10%.

According to the property website, the average additional stamp duty payable on homes that have moved up into the 10% stamp duty band will be around £6,100 after the end of the tapered stamp duty holiday in September, while the additional cost for the average home that has moved up into the 5% band will be around £725.

At the same time, demand for properties priced over £250,000 has dipped by a third since April, the last point at which buyers could try to benefit from the maximum stamp duty land tax saving, but remains up 86% compared to average 2019 levels. Buyer demand for properties below £250,000 is down 24% in England from the high seen in April.

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