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Home buyers paid 17% more stamp duty in 2016: Lloyds

Home buyers paid £8.3bn in stamp duty in 2016, up £1.2bn, or 17 per cent, from the total paid in 2015, figures from Lloyds Bank show.

The research finds that a typical first time buyer would have paid an average stamp duty of £758 in March 2001, £1,989 for their second home in March 2009 and £9,946 for their final step in March 2017.

The rise was a turnaround from the £571m decline between 2014 and 2015, which resulted from the stamp duty reforms that came into place in December 2014.

Lloyds Bank mortgage products director Andrew Mason says: “Rising house prices have caused stamp duty payments to continue to increase despite the reforms that came into effect from December 2014.

“The average home buyer pays £12,693 in stamp duty in total as they move up the housing ladder. This average, however, disguises substantial regional differences with homemovers, with those in Greater London paying over £40,000. Escalating stamp duty payments have contributed to significant increases in moving costs in recent years.”

The research also found that the proportion of first time buyers paying stamp duty has risen in the past 16 years from 47 per cent in 2001 to 78 per cent in 2017. In Greater London, 100 per cent of FTBs face paying stamp duty with 98 per cent paying the tax in the South East. This contrast to the North where 41 per cent of FTBs pay stamp duty.

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