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

Zoopla Data Shows Stamp Duty Costs Prevent Homeowners from Moving

Analysis from property portal Zoopla indicates that stamp duty costs are preventing homeowners from moving, with bills reaching five figures across southern England. The data highlights that stamp duty is a near-certain cost for home movers, and where it becomes a significant financial burden, some transactions are abandoned.

Six in ten property purchases are made by existing homeowners, according to Zoopla. The analysis notes that when the cost of moving becomes a meaningful friction, some moves do not take place, particularly in southern England where house price inflation has been lower in recent years.

Zoopla is calling for the government to adjust the £250,000 threshold at which home movers begin paying stamp duty. The current 5% rate threshold was introduced in 2014. Zoopla states that if this threshold were adjusted in line with house price growth, it would now stand at approximately £380,000, potentially saving buyers up to £6,500 in stamp duty for purchases between £250,000 and £380,000.

The data comes as the UK housing market faces muted sales conditions, with transaction volumes remaining constrained.

Regional Disparities in Stamp Duty

Zoopla’s figures show that more than four out of five homeowners pay stamp duty in every English region except the North East, where 63.5% face a bill. Regional variations in costs are significant. In Yorkshire and the North West, average stamp duty bills are £2,200, representing less than one penny per pound of purchase price.

In contrast, the burden is much higher in southern England. In the South East, 95% of home movers pay stamp duty at an average cost of £11,250, or 2.7 pence per pound. In London, where the median home mover asking price is £600,000, the stamp duty bill reaches £20,000, representing more than three pence per pound of the purchase price.

The report also notes that residential landlords are facing mounting tax pressures, which are affecting investment decisions. The disparity between northern and southern regions highlights how stamp duty costs disproportionately affect homeowners in higher-value markets, potentially restricting labour mobility and housing market liquidity in areas with elevated property prices.