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Stamp Duty tier changes save UK homeowners £1.9bn

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  • 02/12/2015
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Stamp Duty tier changes save UK homeowners £1.9bn
UK home buyers have collectively saved £1.9 bn since stamp duty was reformed in December 2014.

 

Analysis from conveyancer My Home Move suggests the average buyer saved £1,500 each since the reforms.

From midnight on the 3rd December 2014, the old slab system was abolished, benefiting anyone buying under £937,000 and replaced as below:

 Up to £125,000 : 0%
 £125,001 to £250,000 : 2%
 £250,001 to £925,000 : 5%
 £925,001 to £1.5m : 10%
 Above £1.5m : 12%

The majority, or 87% of estate agents, said last year’s Stamp Duty changes have benefited the market and seen prices rise 6%.

Doug Crawford, CEO of My Home Move, said: “The big winners from the changes have been the first-time buyers and second steppers who have really struggled from price hikes due to a lack of housing stock. Cheaper stamp duty bills don’t fix all the problems facing these buyers, but they do help by making it easier to save for a deposit.

Crawford said the old slab system was ripe for reform as it was creating ‘a stranglehold over the market,’ near the stamp duty thresholds, and around the £250,000 mark.

However, those who have lost out from the changes include a small minority of buyers who are looking for luxury homes or expensive London properties which now command up to 12% in Stamp Duty.

“However, following last week’s announcement of a 3% stamp duty surcharge for buy-to-let investors, any deficit could be offset from April.”

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