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Stamp duty takings rise 64% as housing prices soar

Stamp duty takings rise 64% as housing prices soar

Tuesday 12 April 2022

Stamp duty takings rise 64% as housing prices soar

Tuesday 12 April 2022


The Government raked in nearly £30m more than it was expecting in stamp duty last year - with the amount paid out as part of property transactions reaching £61m.

The figure, which marks a 64% increase on the £37m received in 2020, was £29.7m higher than the estimate in the Government Plan 2021 and £17.1m higher than the forecast included in the Government Plan 2022-25.

In their latest Annual Report and Accounts, the Government described 2021 as a “very strong year” for stamp duty.

They said the volume of transactions processed through court in 2021 had increased by 21% with the average Stamp Duty recognised each month increasing from £2.7m to £4.5m.

While the overall number of transactions increased, the number of transactions involving properties of over £1m jumped from 254 to 431.

Four transactions yielded a total of £5.2m in stamp duty – 3.2% of the total collected in 2021 – between them.

The news comes as the latest House Price Index showed that, by the end of 2021, the average price of a house in Jersey had soared by 16% - the highest rate of increase since 2008.

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Pictured: It would take more than three people working full-time jobs to pay off a mortgage "affordably" on a three-bedroom house – with prices now averaging £861,000 - according to the latest House Price Index.

All property types recorded their highest prices ever.

Despite the soaring prices, property sales rose by a fifth in 2021, driven by a 28% rise in one-bedroom-flat transactions and an 11% increase in house sales.

In total, 1,665 homes changed hands last year - the highest turnover ever recorded.

Stamp duty is one of several areas in which the Government saw its revenue increase.

Housing Affordability Q4 2022.png

CLICK TO ENLARGE: How property in Jersey has become less affordable over the years.

Overall, its net income from general revenue in 2021 increased by £146m, including £72m of tax receipts.

This income boost and a lesser than planned expense  on covid meant the Government finished the year with a £59m surplus.

READ MORE...

More stories from Express on the Government's 2021 Annual Report and Accounts...

£59m surplus as stamp duty boosts "better than expected" accounts

Gov headcount swells by more than 1,000 after OneGov

Strong financial year but Gov misses savings target by £3m

FOCUS: Gov’s eco progress under the microscope

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