Homebuyers have paid more stamp duty in the last three months of 2021 than in any other quarter so far, sending nearly £ 3 billion to the Treasury and highlighting the hectic demand in the housing market late last year.
The quarter was the first in which the government was able to reap the full benefits of the housing pandemic boom after seeing revenue fall during the Coat of Arms holiday in England and Northern Ireland from July 2020 to September 2021.
The record £ 2.95 billion stamp duty receipts released on Friday came as some homebuyers rushed to complete their purchases in the previous quarter to earn savings before the end of the holiday.
The levels of transactions in the fourth quarter were 10% lower than in the previous three months and 13% lower than in the fourth quarter of 2020. But after the end of the holiday for stamp duty, 73,000 home sales took the tax again – 66 % increase in transactions with stamp duty compared to a year earlier, according to calculations by real estate agent Savills.
Stamp tax revenues for October to December were £ 348 million more than the previous quarterly record of £ 2.6 billion in the third quarter of 2017. Harvesting was also fueled by strong demand for more expensive housing, which requires higher levels of stamp duty.
Lucian Cook, director of housing research at Savills, said: “Recent housing receipts have been backed by strong activity at the top of the market.
The number of home sales of more than £ 1 million is 36 per cent higher than in the fourth quarter of 2019. The stamp duty of 2 million pounds is € 153,750; or £ 213,750 if purchased as a second home or rental property.
“Transaction levels have risen much more strongly in higher price ranges, where people may have been less concerned about the cost of living or the prospect of rising interest rates, and where they may have had a little more equity, for to continue to act on this desire to find more space, “Cook said.
Housing prices are another factor. They rose sharply during the pandemic, pushing more homes into higher classes of state fees as people looked for homes suitable for blocking, with more outdoor space or properties more suitable for homework.
Although house prices continued to rise in January, according to data from Nationwide this week, economists and housing market experts predicted that market madness would subside this year under rising interest rates and limited affordability.
Robert Gardner, chief economist at Nationwide, said: “Rising house prices have outpaced profit growth by a large margin since the pandemic hit, and as a result, housing affordability has become more unfavorable. . . Household finances are also under pressure from sharp increases in the cost of living. “
The creditor pointed out the difficulties faced by younger buyers, for whom a 10% deposit on the average home buyer for the first time has already reached a record high of 56% of total gross annual income.
“I think we’re going to look at this as a high watermark for stamp duty receipts,” Cook said.