Homebuyers in London pay 47 times more in stamp duty than those in the East Midlands
Homebuyers in London typically pay 47 times more stamp duty than those in the East Midlands, according to the Coventry Building Society.
An average house in the capital is worth £543,099, meaning a buyer pays £14,654 in property tax.
But those buying in the East Midlands are paying £307 for a typical home worth £256,206.
Capital costs: An average house in London is worth £543,099, meaning a buyer pays £14,654 in property tax. But those buying in the East Midlands pay £307 for a typical home worth £256,206
Jonathan Stinton, of Coventry BS, said: “A system where people can pay up to 47 times more tax than others – on something only twice as valuable – is clearly flawed. “
The differences are due to increases in stamp duty thresholds last September.
Homebuyers previously paid tax on properties worth more than £125,000 – but the changes mean the first £250,000 is now tax free.
The next £675,000 is taxed at 5%, up to a value of £925,001, after which it increases to 10%.
The thresholds are in place until March 2025 and reduce the amount of stamp duty on an average priced home from £5,767 to £3,303.
Homebuyers in London are now paying £4,509 more in stamp duty than they would have in 2014 when previous thresholds were set.
But those buying a typical property in the North East, North West and Yorkshire and the Humber pay no tax on their property purchase.
First-time buyers pay no stamp duty on properties worth up to £425,000.