Stamp duty changes put £4,500 in buyers’ pockets

Have you wondered what effect last year’s stamp duty changes have had?

In last year’s Autumn Statement, the chancellor declared changes to stamp duty to make it fairer for buyers.

The new system, which has more gradual tapering depending on purchase price, has meant a saving of an average £4,500, according to Halifax.

“The changes made to stamp duty a year ago have been of significant benefit to many buyers,” said Craig McKinlay, mortgages director at Halifax.

“Only those purchasing the most expensive homes are worse off. There is some evidence that the top end of the market has been adversely affected by the changes with sales over £1.5m falling by twice as much as the market as a whole.”

The new rules mean people buying homes worth more than £938,000 pay more than in the past.

The current rates for stamp duty are:

• Up to £125,000: 0%
• £125,001 to £250,000: 2%
• £250,001 to £925,000: 5%
• £925,001 to £1.5m: 10%
• Above £1.5m: 12%

Nearly three quarters of stamp duty revenue comes from London, the East of England and the South East of England, according to Halifax.

 

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