Given first-time buyers pay no stamp duty when purchasing properties under £300k and reduced stamp duty on homes under £500k, the impact of the fiscal changes will be smaller for this buyer group. Just 5% of those purchasing their first home pay more than £500k.
However in London and the South East, where 13% and 9% respectively of first-time buyers spend over £500k on their first home, the reduction in stamp duty will represent a considerable saving. It’s worth noting that stamp duty remains a barrier for all new purchasers and any reduction is welcome.
Today’s stamp duty changes will be welcome news for investors too. While the 3% surcharge remains in place, the increase in the threshold means that the average stamp duty bill for an investor will fall by £1,840, or 22% in England.
While only 3% of investors purchase properties over £500k, investors in London and the South East stand to gain the most from the changes. One in five landlords purchasing a buy-to-let in London spend more than £500k. As a result, the average stamp duty bill for an investor will fall by £7,240, or 26%. Whereas a landlord buying in the North East will see their average stamp duty bill fall to just £280. And it’s not just landlords who will benefit, those looking to flip properties will make savings too.