Stamp duty revenue from residential property sales has risen 40% in 2006/07, according to figures from HM Revenue and Customs.
The figures also show revenues from residential stamp duty have grown by 140% over the past five years, to 6.4bn in 2006/07.
Much of the rise in numbers is due to more homes falling into higher stamp duty brackets, homes worth more than £250,000, according to the Halifax. The figures show 61% of stamp duty revenue came from higher bands of the tax in 2001/02, compared with 81% in 2006/07.
London and the South of England contributed almost three quarters of all residential stamp duty revenue, a total of £4.7bn, including £1.7bn from London. The Capital contributed 27% of all revenue in the past year.
Halifax called for stamp duty thresholds to be raised significantly and said if stamp duty thresholds had grown in line with house prices, then the lower £250,000 band would be £729,000 and the £500,000 band would have risen to £1,458,000.
“The revenue generated from stamp duty on property purchases has soared as governments of both political parties have failed to link thresholds to house price inflation”, says Martin Ellis, chief economist at Halifax.
“We call on the government to raise all the stamp duty thresholds to reflect the increase in house prices over the past decade and to commit to doing so in the future.”
Yesterday, Shadow Chancellor George Osborne said a Conservative government would remove stamp duty for first time buyers and the issue, along with other aspects affecting the affordability of housing, is likely to be a major election issue.
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