Number of bedrooms
Set price range

No properties matching your search criteria
Back to all posts

Who benefits the most from stamp duty?

Since the housing boom that occurred in 2007/08 the housing market hit record highs with homebuyers paying a total of £7.5bn in stamp duty in 2014/15, £800m more than the previous record in 2007/08, according to Halifax research.

The change in the stamp duty tax was announced in 2014, altering to a progressive banded system where buyers only pay a higher rate proportionate to the price of the property. No tax is paid on the first £125,000 of the value of the property, then 2% is paid on the value above £125,001 to £250,000. For example, with a home costing £175,000 you would pay £1,000 (2% of the property value that falls within the relevant band e.g. 2% of £50,000).  See here for full stamp duty rates.

The stamp duty increase benefits the First-Time/average homebuyer the most. Those spending less than £938,000 on a property benefit from a reduced bill of more than half. Under the old system, buyers spending £273,531 on a property would pay £8,205, where now under the progressive tax system they would only pay £3,676. According to Halifax research, since the system was altered a year ago, the average homebuyers pay £4,500 less in stamp duty.

With the new official stamp duty government writing due to be announced tomorrow, the full impact will undoubtedly create a short term effect on the housing market in the lead up to the April 2016 implementation date. Read our here about what the new buy-to-let stamp duty means and how it might affect you.

Your email address will not be published. Required fields are marked *