The stamp duty changes made last year have saved British home buyers £1.9 billion, new research shows.
According to conveyancing services provider My Home Move, home buyers have saved an average of £1,500 each since the reforms.
The changes introduced in December last year abolished the old system of stamp duty and help benefit anyone purchasing a home priced under £937,500. Those purchasing a home above this amount now face a bigger tax bill.
You now pay 0% up to £125,000; 2% to £250,000; 5% to £925,000; 10% to £1.5million and 12% above that.
Doug Crawford, CEO of My Home Move, said first-time buyers and second steppers who have struggled from price hikes due to a lack of housing stock had benefited from the changes which had made it easier to save for a deposit.
“The old ‘slab’ system was ripe for reform as it was creating a stranglehold over the market, especially where property prices neared the stamp duty thresholds, and in particular around the £250,000 mark. Thanks to the reforms, people are now able to sell their homes for a truer value.”
However, he did note that a small minority of buyers looking for luxury homes had lost out due to the reforms.
“With a slowdown now being felt towards the top end of the market, it could cause a worry for the government as receipts from stamp duty start to fall. However, following last week’s announcement of a 3% stamp duty surcharge for buy-to-let investors, any deficit could be offset from April,” said Crawford.
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