Following the government’s decision to abolish the slab structure on Stamp Duty tax, Nationwide said 86% of home buyers in London and the South East would profit from the changes.
Under the new system, purchasers pay the marginal tax rate on the relevant elements of the purchase price, with 98% of buyers set to pay the same or less tax. According to 2013/14 data from the Land Registry, home buyers in England and Wales would save an average of £1,600.
Buyers tend to save the most where average prices are higher and thus a higher proportion of transactions are liable for Stamp Duty, Nationwide said.
The average SDLT paid is expected to be lower in 97% of constituencies, with London the biggest beneficiary.
However, London will also have the highest proportion of buyers paying more Stamp Duty – an estimated 8,700 individuals or 7%. Just two other regions, the South East and East of England, will see a proportion of buyers paying more in Stamp Duty with 2% and 1% paying more respectively.
Kensington in London was the only constituency in the country identified by Nationwide where the majority of purchasers would be worse off under the new system, with 51% of buyers expected to pay more.
