The average homebuyer in London pays stamp duty of over £7,500, around three times the amount it was five years ago, according to a new report.

Stamp duty is paid by homeowners at a rate of one per cent for property over the £120,000 threshold, three per cent for those worth £250,001 and five per cent for property worth £500,000 or more.

Figures from the Halifax reveal the average cost of a residential property in London is £257,120, putting it above the £250,000 threshold for stamp duty at three per cent.

This means the average homebuyer in London is paying stamp duty of £7,714 compared to £1,535 five years ago.

Estate agents and lenders have urged the government to raise the lowest threshold to help first time buyers get a foot on the property ladder.

Tim Crawford, group economist at the Halifax, commented: "The higher stamp duty thresholds have not changed in more than eight years, even though property prices have increased by 150% over this period.