Most London homebuyers pay stamp duty of more than £7,500

TWO THIRDS of London home sales attract stamp duty of more than £7,500, according to research based on Land Registry data out today from the TaxPayers’ Alliance (TPA).

Figures from the Nationwide show the average price of a London house hit £318,214 in July, meaning potential purchasers must be able to pay £9,500 in cash to the Treasury in addition to putting down a deposit and gaining mortgage approval.

Stamp duty must be paid in full and in cash on the day of completion, which the TPA argues is an “unfair double tax” and a major barrier for first time buyers wanting to get on the housing ladder.

The tax, which ranges from one to seven per cent, is levied on the full value of the sale once it hits certain thresholds, creating bubbles of activity around key price points.