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.
The vast majority of estate agents believe that not enough people...
A property buying spree recorded in the East of England last...
Over 64,000 property purchases over the last year involved the buyer...
The government has allegedly ruled out any regulation of estate agents...
It’s tempting to think that Michael Gove’s proposed clampdown on Airbnb-style...
Councils across England could make an additional £540m a year in...
The vast majority of negligence claims against conveyancers are for relatively...
You don’t have to simply accept things as they are when...
From the uptick in house sales in January to a house price...
Happy birthday to us….and all members of the The ValPal Network! We...
With a combined value surpassing £7.4 trillion, the UK’s 29 million...
Let's be honest – landlords are the lifeblood of any letting...
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
The benefits for letting agents to outsource their client accounting is...
When almost all agents and developers use the tried and tested formula...
I think we can all agree that the National Trading Standards...
.png)
As domestic battery storage systems become increasingly prevalent in UK homes,...
.png)
A team from The ValPal Network joined industry Facebook ads expert...
.png)
In this interview, Riccardo Dawson, Chief Operating Officer at Alto and...
A client account is essential to your lettings business, but the...
%20(002).png)
In today's fast-paced and ever-evolving property industry, it’s essential that forward-thinking...
As electric vehicles increasingly populate our roads and the necessity for...
As estate agents, it is important to make sure that your...
Estate agency has changed. No longer is it required to sit in...
Changes to consumer behaviour usually arrive in waves. Most of the...
At iamproperty we are excited to share the announcement of our...
In an exclusive interview with Estate Agent Today, Simon Coaker, Sales &...
It’s no secret – 2023 is a difficult year for the...
2023 has been coined as ‘the year of AI adoption’, and...
%20(002).jpg)
There are a few common questions that arise when the issue...
As a signage company we know we have a serious responsibility...
The Government’s mini budget on September 23 was anything but ‘mini’...
Agent websites have become more crucial than ever in attracting new...
Interesting report this week in Estate Agent Today on an analysis...
An anti-money laundering (AML) expert has queried why there is a...
MPs have launched an inquiry on improving the home buying and...
MPs have launched an inquiry on improving the home buying and...
The Law Society is facing backlash from conveyancers after issuing new...
An anti-money laundering (AML) expert has queried why there is a...
Who are you and what does it say on...
Who are you, and what does it say on...
Who are you and what does it say on your...
Join the conversation
Jump to latest comment and add your reply
I think that's the first time I've ever seen the OBR get a prediction nearly right!
Good news. Can't really argue with findings such as this.
Well, Tim, you could. How many people are actually benefiting from this? It says young first-time buyers are being helped, but if many of these can't even afford to cobble together a deposit in the first place, what's the point in stamp duty being slightly cheaper?
You need to tackle the problem at its root - bring house prices down to sensible levels by introducing more stock to the market. But the government don't seen to understand that. They're just gonna keep burying their heads in the sand, merrily doing nothing to cure the housing bubble until it goes pop. When it does, it won't be them who suffers, it'll be ordinary people.
We can't carry on with ludicrously high house prices for ever, it's not sustainable! Our whole economy is built off the back of house prices and the financial services sector. As we saw, when one of these goes down the pan, things quickly go downhill. But, of course, we haven't learn our lessons from the last financial crisis. That would be too much like good sense.
Yes, the stamp duty changes were long due. Congratulations to the government for implementing them, but it should have been done much, much sooner.
Please login to comment