Home Residential Property Stamp duty now up to 881% higher thanks to holiday

Stamp duty now up to 881% higher thanks to holiday

by LLP Editor
25th Mar 22 12:01 pm

Research by GetAgent.co.uk reveals that since the pandemic-inspired SDLT holiday came to an end, the amount of stamp duty the average homebuyer in England is now required to pay is 84% higher than it was before the tax break was introduced – although some areas have seen this cost increase by as much as 881%.

In June 2020, just before the SDLT holiday was first introduced, the average house price in England was £250,739, with the average cost of stamp duty sitting at £2,537.

However, the introduction of the stamp duty holiday spurred an enormous surge in buyer demand and, with insufficient stock to service this demand, house prices across England climbed 17% between June 2020 and December 2021, when the scheme finally ended.

As a result, those looking to purchase in a post stamp duty holiday property market are doing so at an average price of £293,339. This means the stamp duty payable on their purchase now sits at £4,667 – an increase of 84% compared to prior to the stamp duty holiday.

Biggest SDLT Increases (£)

The largest pound-and-pence SDLT increases are, naturally, in locations where house prices are the highest.

Homebuyers in London’s Kensington & Chelsea have endured the largest increase of £7,223, closely followed by Islington (£6,168), and the City of Westminster (£5,980), with Hammersmith and Fulham also making the top 10 (£5,210).

It’s not the London market that has seen massive increases in the cost of stamp duty though, with Elmbridge (£5,894), South Hams (£5,867), Cotswold (£4,694), North Devon (£4,324), South Oxfordshire (£4,191) and East Hampshire also ranking amongst some of the largest monetary increases in the country.

Biggest SDLT Increases (%)

In Preston, the average cost of stamp duty was just £33 prior to the start of the holiday and while it still sits at just £322 now, it means homebuyers have seen a huge 881% increase in cost as a result of the scheme.

Darlington (776%), Barnsley (674%), South Tyneside (651%) and Gateshead (578%) have also seen some of the largest increases.

Founder and CEO of GetAgent.co.uk, Colby Short, commented: “We now have a comprehensive look at just how house prices were impacted by the stamp duty holiday and while many certainly benefited from the scheme, it’s fair to say that today’s buyers are also considerably worse off as a result.

The removal of stamp duty tax led to an overwhelming surge in buyer demand and as a result, both the price of a property and the tax payable on its purchase have climbed considerably.

For the government, this will be touted as an economic success story during an otherwise uncertain time. However, it’s fair to say that those struggling with the even higher cost of homeownership in today’s market are unlikely to share that sentiment.”

Leave a Commment

You may also like

CLOSE AD