Stamp duty changes to cut home purchase costs of 71% of buyers

More than two thirds (71 per cent) of home buyers in England and Wales will benefit from the changes to stamp duty made in December 2014, new Nationwide research shows.

Buyers in areas with higher average property prices stand to benefit more from the changes in stamp duty because the proportion of transactions is higher as well.

So, according to Nationwide’s analysis, the biggest benefits will be to buyers in the South and the percentage of cost cuts will decrease the further North one gets.

The proportion of buyers who will benefit in both London and the South East stands at 86 per cent. The average amount buyers in London would save is £2,175 and the average benefit for buyers in the South East is £1,740.

The percentage of transactions benefitting in the South West is 81 per cent and the same is for the East of England. The average benefit for the former region is £1,445 and for the latter it is £1,540.

The proportion of benefits drops to 61 per cent (average benefit standing at £1,330) in the West Midlands and to 58 per cent (average benefit at £1,255) in the East Midlands.

Wales and Yorkshire and the Humber both have 53 per cent of transactions benefitting, with average cost savings of £1,220 and £1,270 respectively.

As much as 51 per cent of buyers in the North West will benefit by an average of £1,290. The proportion in the North East is smallest, at 45 per cent, and average benefit of £1,205.

The changes to the Stamp Duty Land Tax (SDLT) saw the slab structure completely abolished. The changes will see 98 per cent of buyers paying the same or less tax and only those purchasing homes valued between £937,500 and £1 million or more than £1.125 million are set to pay more.

The research is based on a Nationwide analysis of Land Registry price paid data for 2013/14 for England & Wales.