Stamp duty holiday set to save buyers £1.5bn before the March deadline
The current stamp duty holiday has already saved homebuyers an estimated £817m, with the potential to reach £1.5bn before the March deadline, according to new research.
The current stamp duty holiday has already saved homebuyers an estimated £817m, with the potential to reach £1.5bn before the March deadline, according to new research.
Researchers analysed property sold price records for residential transactions in England since the introduction of the stamp duty holiday. They then looked at the number of transactions exempt from paying stamp duty as a percentage of all transactions and the total saving made by homebuyer above and below the £500,000 threshold.
The data reveals that 147,969 transactions have completed to the tune of more than £50.3m in value since 8 July last year.
A notable 125,389, or 85%, of these transactions have fallen within the £500,000 price bracket meaning they are exempt from paying stamp duty due to the existing holiday.
The study shows that thanks to the reprieve in place, stamp duty tax paid since July of last year totals just £627.467m at present, with more homebuyers still due to benefit as a result.
Homebuyers in London have unsurprisingly seen by far the most significant saving compared to other major UK cities.
Estimations are that the capital has seen a stamp duty saving of £190m alone, with 49% of all transactions also paying no tax at all having completed below the £500,000 threshold.
In Sunderland, for example, 99.7% of residential transactions have been stamp duty exempt. While this saving equates to just £599,349, it has seen the amount of stamp duty paid hit just £12,025 compared to £611,374 in normal market conditions; a considerable saving for homebuyers in the city.