Homeowners in the UK spend an average £12,693 in total on stamp duty as they move up the housing ladder with an increase of 17 per cent in 2016 over 2015.
According to a latest research from Lloyds Bank, homebuyers paid £8.3 billion in stamp duty in 2016 compared with £7.1 billion in 2015.
Rising house prices have caused stamp duty payments to continue to increase despite the reforms that came into effect from December 2014. As a result, the £8.3 billion raised in stamp duty in 2016 was more than £2 billion higher than at the peak of the last housing boom in 2007, Lloyds Bank data revealed.
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 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, said Andrew Mason, Lloyds Bank mortgage products director.
Other research findings show 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 first time buyers face paying stamp duty with 98 per cent of first time buyers paying the tax in the South East.
Homebuyers pay an average of nearly £12,700 in stamp duty over their lifetime