Homeowners collectively paid out £6.5 billion in stamp duty and inheritance tax last year, new figures show.

In the 2004/05 tax year, Brits forked out £2 billion more stamp duty and inheritance tax, more than in 2003/04, according to the Council of Mortgage Lenders' (CML) UK Housing Review.

Stamp duty accounted for £5.5 billion but inheritance tax on property jumped to £1.1 billion from £480 million in 1997 when Labour came to power.

Peter Williams, deputy director of the Council of Mortgage Lenders, said: "The findings on tax reinforce . . . the growing financial burden on home-ownership created by government policy.

"We applaud the government's election pledge to expand owner-occupation, but the reality is that this goal is in danger of being thwarted by growing cost and complexity of policy proposals and taxation measures."

But moves to double the stamp duty allowance to £120,000 will do little to reduce the amount of tax homeowners are paying as few homes now sell for under that amount.