Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Hamptons Warns Stamp Duty Is Stifling UK Housing Market

Stamp Duty is having a significant impact on the UK housing market, with buyers facing higher tax bills as property prices rise, according to Hamptons. The agency reports that Stamp Duty paid to buy a home in England has increased by 194% since 2015, far outpacing the 44% rise in home values over the same period.

Hamptons highlights that as house prices climb, more buyers are being pushed into higher Stamp Duty bands. This trend has resulted in tax bills rising at four times the rate of property prices, a situation described as a “stealth raid” on buyers.

Richard Donnell, Executive Director of Research at Zoopla, stated that after mortgage affordability, Stamp Duty has probably the biggest impact on how many people move home. He noted that the tax now affects average homeowners moving for jobs or family reasons, not just those purchasing high-value properties.

Tom Bill, Head of UK Residential Research at Knight Frank, commented that Stamp Duty acts as a “perma-drag” on the housing market. He explained that as transaction taxes rise, the number of transactions logically falls.

For letting agents and inventory clerks, these developments may influence market activity and the volume of property transactions, as higher Stamp Duty costs could deter potential movers.