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Stamp Duty saving all but wiped out by higher mortgage deposits

The cost of the average mortgage deposit has climbed £11,000 in some areas thanks to the stamp duty holiday fuelling the housing market.

That data comes from Keller Williams UK agency which has looked at the cost of buying a home based on the average mortgage deposit at 15 per cent of a property’s agreed price. 

At £234,474, the current UK average house price requires homebuyers to stump up £38,461 for a 15 per cent mortgage deposit. 


This is £3,249 more than the average 15 per cent deposit of £25,212 prior to the launch of the stamp duty holiday – that’s a nine per cent hike. 

The South West is the region to have seen the largest monetary jump in the average cost of a deposit, up £4,196 since the start of the stamp duty holiday.

The South East has also seen an increase of more than £4,000, closely followed by the East of England (£3,498) and London (£3,180).

“The stamp duty holiday is now effectively over for all but those in the final stages of a transaction due to the long market delays that have accumulated at the back end of the process” explains Ben Taylor, chief executive of Keller Williams UK.

“This reduction in affordability has been felt right across the UK with southern regions seeing the largest monetary jump, while those in the north are facing the highest increase versus what they were paying previously.

“While the end of the stamp duty holiday will no doubt bring a natural correction to an otherwise overheating market, it’s unlikely to cause prices to crash and so the cost of buying looks set to remain a tough ask for those yet to climb the ladder.”





At local authority level, Hammersmith and Fulham has seen the largest jump with the average 15 per cent deposit climbing by £11,458 when compared to June of last year. 

The initial cost of buying in Elmbridge (£11,223) and Haringey (£10,052) has also climbed by more than £10,000 as a result of the stamp duty holiday, with homebuyers in Rutland (£9,641) and Stratford-on-Avon (£9,236) also face steeper charges.

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    • 15 June 2021 07:21 AM

    Erm…is this story really just: house prices go up 9%? Deposits are a function of a house purchase and are equity, not a cost.

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    Tfirstname Flastname, the real story is...

    Stamp duty savings wiped out by the policies of a corrupt government who's MPs are up to their necks in property supported by the Term Funding scam that is artificially suppressing mortgage and savings rates

    9 houses Sunak saves idiots 3% while lending them magicked up cash (their own money stolen from them) so they can pay 10% more, while the low IRs and QE causes inflation, making them poorer.

    The housing market is a sick joke, when the collapse finally it will be spectacular.

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    • 15 June 2021 10:40 AM

    Except low IR and QE causing inflation will make their highly leveraged debt a smaller burden at little to no cost to the individual and assuming salaries follow inflation (historically always have with a slight lag) they get richer.

    This is not a house price bubble caused by supply and demand. This is a macro-economic re-pricing. When stimulus is eased (assuming it’s done in a steady way) the market will adjust without a crash.

    The single good thing about vested interests being in charge is they do the right thing for their vested interest. And if that vested interest is aligned to the majority of the nation then it becomes more benevolent self-interest than political ideology.

    The real issues come when you have a government pursuing a political ideology which they believe to be ‘good for the people’ at any cost (the ends justify the means). Fortunately the UK dodged that outcome at the last election.


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