Homebuyers paid over £1bn in stamp duty in September, according to Coventry Building Society’s analysis of the latest HMRC figures.  And so far this year homebuyers have collectively paid £8.6bn in property tax.

Coventry BS says the current tax regime offers one time support for first time buyers but doesn’t help people looking to downsize and may in fact deter them from moving to a property that meets their needs. This could reduce the availability of homes needed by larger families.

Homebuyers currently pay stamp duty if their home costs most than £250,000. In March 2025 this will drop to £125,000 – taking the tax bill on an average priced home in England from £2,980 to £5,480.

The society’s analysis of latest Census data reveals there’s at least 24.5million spare bedrooms in households across England – this suggests that many people could be living in homes which are no longer the right size for their needs.

Coventry BS head of intermediary relationships Jonathan Stinton comments: “There are enough spare bedrooms in England to house every person in London nearly three times over. With at least 24 million spare bedrooms across the country, there needs to be more of an incentive to downsize.

“Stamp Duty is an unavoidable upfront cost, which could amount to tens of thousands of pounds – it’s no surprise potential downsizers could be deterred by the thought of paying a hefty bill, along with the other associated costs, to ultimately end up with something less valuable. There could be many people who feel it just don’t make financial sense to downsize.

He adds: “It’s only going to get worse in seventeen months’ time, when the Stamp Duty thresholds change again and the bill on an average priced home jumps by £2,500. It’s clear that a long-term solution needs to be established, one which aims to support buyers who need to move both up and down the ladder.”