With stamp duty now only payable on a first home purchase above £425,000, first-time buyers across England are set to save up to £8,750 when climbing the property ladder, with many paying no SDLT whatsoever.
Revolution Brokers analysed current first-time buyer house prices across England to see just how much of the market is now stamp duty exempt for first-time buyers, due to the average price paid for a first home sitting at or below the new £425,000 price threshold.
The research shows that just six areas of the property market will see first-time buyers ineligible for any stamp duty relief under the new structure, due to the fact the average first home is worth over £625k.
While this accounts for just 2% of the total market, these areas are predictably all located within London – Kensington and Chelsea, the Cities of Westminster and London, Camden, Hammersmith and Fulham and Islington.
A further 7% of local authorities across England will see the average first-time buyer pay a reduced 5% rate of stamp duty due to the average price of a first home falling between the £425,001 to £625,000 price threshold.
Again, these 21 local authorities are largely located within London, although they also include Elmsbridge, Three Rivers, St Albans, Cambridge, Hertsmere, Windsor and Maidenhead and Oxford.
However, as a result of the latest stamp duty cut, the remaining 91% of local authorities across England will now see the average first-time buyer pay no stamp duty on their purchase at all, with the average price paid for a first home coming in at or below the £425,000 threshold.
Almas Uddin, Founding Director of Revolution Brokers said, “The nation’s first-time buyers have benefited to a much greater extent from the latest cut to stamp duty and quite rightly so, as they have a far harder task to overcome in securing that first foot on the ladder compared to those making that second or third step.
“While it certainly won’t help them save that all-important mortgage deposit, or with the escalating cost of their monthly mortgage repayment, a vast number will, at least, be able to buy without the additional hurdle of a stamp duty bill.”