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Rumoured stamp duty cut could extend to majority of English properties

  • 21/09/2022
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Rumoured stamp duty cut could extend to majority of English properties
If the government commits to the rumoured plan to cut stamp duty, some 74 per cent of properties in England could be exempt from paying the tax.

Rightmove has analysed that this will happen if the relief applies to homes worth up to £500,000. Currently, seven per cent of homes are exempt from the stamp duty land tax as they fall below the value threshold of £125,000. 

If this is brought up to properties worth between £125,001 and £250,000, this will make 26 per cent of homes exempt. 

First-time buyers are already exempt from paying stamp duty on properties worth up to £300,000, which accounts for 45 per cent of homes on the market. 

If the government plans to relieve buyers from paying stamp duty on homes worth between £250,001 and £925,000, this will make 60 per cent of properties exempt. 

Just five per cent of properties will avoid the tax if the threshold is between £925,000 and £1.5m, and just two per cent of homes will benefit if this is limited to values above £1.5m. 

On average, home movers pay £8,258 in stamp duty for a property with an average asking price of £365,173. 


Cost cuts welcome 

Tim Bannister, director of property data at Rightmove, said any help to reduce the cost of moving would be welcomed by home buyers. 

He added: “Sellers who may have been considering listing their property for sale may be encouraged to push on with their plans given the potential for increased demand, in turn, bringing much needed stock to a currently supply constrained market.”  

Bannister said: “If the cuts benefit homes in higher price brackets it would help those trading up more than it would help first-time buyers. With rising interest rates and cost of living, it could be welcome to those looking for a bit more buffer to find the home they want, but if prices rise further then that extra money could quickly be swallowed up. 

“The impact on supply, demand and ultimately prices will depend on the detail, including if it will extend to second-home buyers and investors.” 


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