The Council of Mortgage Lenders has argued that, as the housing market recovers, the government is increasingly benefiting from Stamp Duty revenue.

It questioned why the government allows first-time buyers to be hit by the tax while at the same time introducing schemes like Help to Buy:

“There is a perversity in introducing policy initiatives that seek to bridge the deposit gap for households, while at the same time exposing the same group of buyers to a material tax burden.”

Although the CML welcomed Scottish and Welsh plans to reform Stamp Duty, it pointed out 94% of the tax is paid by English buyers.

Stamp Duty operates in ‘slabs’, meaning the buyer of a home worth less than £250,000 pays just 1% in tax but those above the threshold pay 3%.

Almost half of first-time buyers in London now pay Stamp Duty at a rate of at least 3% of the purchase price, compared to just over a quarter in 2006-7.

In July, the Scottish Parliament passed a bill introducing a more progressive tax. With a few exceptions, all buyers of houses with less than £2m will be better off.