Londoners pay on average four times more Stamp Duty than the rest of UK, according to research from London Central Portfolio.
According to the data, Greater London proved the biggest contributor to Stamp Duty at around 39 percent.
The research revealed that the Royal Borough of Kensington and Chelsea and the City of Westminster alone contributed in excess of £0.6 billion.
The data also found that whilst the average basic rate Stamp Duty paid by buyers in England and Wales came in at £7,161, London buyers pay four times that figure, coming at £27,232.
Naomi Heaton, CEO of London Central Portfolio, said: “Despite the continued rumble around whether the richest are paying their ‘fair share’, it is clear that they are the main contributor to Stamp Duty revenue. ”
She added: “LCP’s findings indicate that the majority of the Exchequer’s £9.5bn tax take is being generated by the 10% most expensive sales and that buyers in London are paying 4 times more Stamp Duty than the national average.”
As it stands, the average house price in the UK is £218,255, whilst London property prices prove substantially higher at £490,718.
Nevertheless, the property market in the UK continues to stagnate as Brexit negotiations continue to play out.
The housing market in the capital continues to be the worst hit by economic uncertainty that has ensued, with prices falling more than 15 per cent in the last 12 months.
Government figures reveal that the number of completed house sales in England dropped by 21.2 per cent to 62,482, compared with 79,243 back in November 2015.
Meanwhile, the number of completed house sales in London fell by 34.8 per cent to 6,394 compared with 9,806.
This week the government announced several measures with the aim of tackling improving the housing sector.
Yesterday housing and communities secretary Sajid Javid announced that real estate agents in the UK will now be required to hold a professional qualification in order to practice.
Alongside this, Javid pledged the government’s commitment to crackdown on the practice of “gazumping”, where sellers accept higher offers than necessary.
Read more about the government proposals here.
