"Despite representing approximately just 1.3% of England’s landmass, the capital is responsible for one-third of all property taxes by way of stamp duty."
The data shows that the 125,000 residential property transactions in London in 2018 accounted for just 11.3% of the overall total, however SDLT paid by London home buyers in that time totalled £3.6bn - 39.2% of the £9.2bn worth of SDLT receipts across the nation as a whole.
The latest data shows that transactions in London have dipped by 33% in the last decade from 186,000 in 2008 to 125,000 in 2018. However, even with prices dropping in recent months the amount paid in stamp duty by London home buyers has jumped 86.4% in the last decade from £1.9bn to £3.6bn.
The next largest SDLT bill paid last year was in the South East at over £1.9bn. While this still accounted for 21.5% of the total bill nationwide it is almost half that paid by London, despite the South East accounting for the highest level of transactions at 16.1%.
The North West accounted for the second largest percentage of transactions last year (12.3%), but paid just the fifth largest amount into the stamp duty pot at 4.9%.
Vidhur Mehra, finance director at Benham and Reeves, commented: “Stamp duty is a tax penalty disproportionately aimed at London. Despite representing approximately just 1.3% of England’s landmass, the capital is responsible for one-third of all property taxes by way of stamp duty.
"This is not just because London is home to the highest property prices in the nation, but also because at higher values the levy is now designed to penalise that sector harder in relative terms.
"Stamp duty is not only an outdated, archaic practice but a tax on aspiration, choking the upwardly mobile who happen to live where many of the best jobs and transport infrastructure are provided.”
