Sunday 24 November 2024
Select a region
News

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.

helierhousingpopulationhomes.jpg

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

Sign up to newsletter

 

Comments

Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.

You have landed on the Bailiwick Express website, however it appears you are based in . Would you like to stay on the site, or visit the site?