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Homeowners save £701million since stamp duty overhaul

Homeowners save £701million since stamp duty overhaul

Homeowners have saved £701million in the six months since the stamp duty system was reformed last December.  

Research carried out by myhomemove calculates that each property buyer who bought a property for less than £937,500 saved an average of £1,400. 

The changes – introduced by Chancellor George Osborne – have been predicted to save money for 98% of property purchasers. 

While benefitting those purchasing cheaper properties, the new tax rates have penalised those at the higher end of the market. 

The new tax of 12% on properties bought for over £1.5 million is significantly higher than the 7% charged on properties over £2 million under the previous system. 

High numbers of agents expressed their relief at the overhaul after many had been calling for a new stamp duty system for many years.

The Office for Budget Responsibility calculated at the time that the new system would cost the treasury over £700m of lost tax this year. 

“The changes have a particularly positive impact on those struggling the most to get onto the property ladder, first-time-buyers, as they can now save more money towards a deposit for their purchase,” says Doug Crawford, CEO of myhomemove.
“While there are losers from the changes, these are a small minority of buyers. For them, the risk of a prospective ‘mansion tax’ was far greater than the increase in stamp duty. Early signs indicate that the election result has reassured buyers of higher value properties, with many estate agents reporting a buoyant market at the top,” he adds.

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