Treasury receives £1.21bn in stamp duty revenue in November

Stamp duty receipts for November were just 8% down on October 2021 (£1.32bn) and 22% higher than pre-pandemic levels in November 2019 (£0.94bn).

Treasury receives £1.21bn in stamp duty revenue in November

The Treasury received £1.21bn in stamp duty revenue in November 2021, taking the total for the year so far to £11.44bn, the highest amount for the first 11 months of the year since 2017, according to HM Revenue and Customs (HMRC).

 

Treasury stamp duty receipts for November were just 8% down on October 2021 (£1.32bn) and 22% higher than pre-pandemic levels in November 2019 (£0.94bn).

Total HMRC receipts for April 2021 to November 2021 were £448.1bn, which is £106.8bn higher than in the same period a year earlier.

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “It’s been a big year for the Treasury’s stamp duty receipts, despite hundreds of thousands of buyers being exempt from paying it for the first nine months of 2021.

"This shows just how high the demand for higher value homes, second homes and rental properties has been this year.

“While we’re entering a quieter period for the mortgage market, we’d expect to see activity pick up fairly quickly in 2022, and without a Stamp Duty holiday in place, receipts for HMRC will undoubtedly continue to climb next year.

"Plus, with the Bank of England proposing to ease affordability rules in 2022, this could well push up demand, therefore increasing prices and pushing stamp duty receipts even higher.”

Stuart Wilson, corporate marketing director, added: “November activity was reflective of that witnessed earlier in Q4. While activity did not reach the levels seen during the stamp duty holiday, it still remained high, spurred on by the record low base rate.

"At the older end of the market, we continued to see older buyers using equity release to purchase their dream home, with the average property purchased with the support of equity release costing £362,742, over £7,500 higher than the average for all properties.

“That said, 2022 looks likely to be another uncertain year, with further restrictions seemingly likely to be put in place by the government and the Bank of England raising interest rates for the first time in three years.

"Against this backdrop, equity release will continue to be an important financial tool for many homeowners, whether that’s to help them fund day-to-day costs, help loved ones financially or move to a home more suited to their needs.”

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