The latest research by estate agent comparison site, GetAgent.co.uk, has revealed just how much of the property market across England is set to see the biggest saving when it comes to the latest stamp duty cuts introduced by the government last Friday.
From now on, SDLT will only be payable on property purchases over the £250,000 price threshold, saving the average homebuyer as much as £2,500.
GetAgent analysed the current market to reveal just how many homebuyers are due to benefit from this maximum saving based on the current average house price in each area of England.
The research shows that currently, 32% of local authorities are home to an average house price below the new, initial SDLT threshold of £250,000 and, as a result, the average homebuyer in these areas will pay no stamp duty on their purchase.
For those who do still stand to pay stamp duty, the benefits of the latest cuts are still pretty extensive.
At a regional level, homebuyers in London, the South West, East of England, South East and the West Midlands all stand to save the maximum of £2,500 as a result of the latest stamp duty cuts.
In the East Midlands, the average homebuyer will save £2,455, falling to £1,842 in the North West, £1,739 in Yorkshire and the Humber and £765 in the North East, due to the lower average cost of buying a home.
GetAgent then analysed who stands to save what across each local authority in England.
The figures show that the average homebuyer across 68% of all local authorities stands to make the maximum stamp duty saving of £2,500 on their property purchase.
A further 15% of local authorities will see homebuyers save between £1,501 and £2,499, while this saving still sits as high as £501 to £1,500 across a further 13% of the market.
Just 4% of areas will see homebuyers save between just £1 to £500 and Burnley is the only area of England where no saving will be made. However, this is due to the fact that the average house price sat below the original threshold at which the tax was payable prior to the cuts, so nothing was due then, as well as now.
Co-founder and CEO of GetAgent.co.uk, Colby Short said, “As the famous advertising slogan goes, every little helps, and while the maximum saving on offer to the average homebuyer may be fairly meagre in the grand scheme of property affordability, it’s a small saving that a vast majority are going to benefit from.
Whether the latest cut means you’re paying no stamp duty at all, or your bill has reduced, it’s a saving that is sure to be welcomed by households who are currently struggling with the toughest financial landscape we’ve seen in some time.
So while many across the industry remain sceptical or even underwhelmed by this latest move from the government, it will certainly help rejuvenate a market that was running a little low on steam following such a prolonged period of boom.”