The Stamp Duty Land Tax (Temporary Relief) Act was introduced by the government in July 2020 to combat the weight of the COVID 19 Pandemic on the housing market. Now, a year later, and nearly 4 months after Stamp Duty began its slow return to normal rates, our data shows that first time buyers are paying up to 31.5% more for properties across England.

### What is the Stamp Duty Holiday (Stamp Duty Land Tax Temporary Relief Act)?

To prevent COVID 19 Pandemic from devastating the housing market, the government intervened with the Stamp Duty Land Tax (Temporary Relief) Act. The Act, also known as the Stamp Duty Holiday, suspended and altered some of the existing rates for SDLT to incite interest in the housing market and galvanise the economy. 

From 8th July 2020 to 30th June 2021, home buyers could pay highly reduced Stamp Duty rates, including zero tax on properties priced under £500,000.

* **Up to £500,000**: Zero SDLT
* **£500,001 to £925,000**: 5%
* **£925,001 to £1.5 million**: 10%
* **Above £1.5 million**: 12%

### How does the Stamp Duty Holiday affect house prices?

As Stamp Duty is a tax on home buyers - the lower the rates, the more money buyers have in their pockets. The holiday, coupled with the severe shortage of homes on the housing market, and a general lack of funds among average-wage home buyers, has made the demand for property skyrocket. With home sellers quick to take advantage of this situation, there’s been a big increase in property prices across the country.

If you’re interested in how house prices are looking in your area, check out our [free House Prices tool](https://www.getagent.co.uk/house-prices). It provides up-to-date information on average house prices as well as their average selling time.

### The average first time home buyer is paying 11.7% more

In July 2020 just before the SDLT holiday was introduced, the [average price of a first-time buyer home](https://www.getagent.co.uk/house-prices) was £212,166. However, our latest figures show the average first-time buyer home now costs £236,982, an increase of £24,816 or 11.7%.

### Biggest increases by region

The North West has seen the largest first-time buyer price increase by region, with the average first-time buyer now paying £168,820. That’s a 16.9% jump since July last year. 

Elsewhere in the north, Yorkshire and Humber have seen a rise of 14.8% and the North East has seen a rise of 13.4%. In the Midlands region, the West Midlands has seen a rise of 13% and the East Midlands a rise of 12.9%

* **East Midlands**: 12.92%
* **East of England**: 11.29%
* **London**: 5.28%
* **North East**: 13.41%
* **North West**: 16.90%
* **South East**: 8.94%
* **South West**: 11.28%
* **West Midlands**: 13.08%
* **Yorkshire and The Humber:** 14.77%
* **England**: 11.70%

### Biggest increases by local authority level

Richmondshire, North Yorkshire, has seen the largest increase in average price for a first-time buyer. Originally £178,974 in June 2020, today the average price has risen to £235,425, an increase of £56,451 or 31.5%

In Rossendale, Lancashire, the average first-time buyer property now costs £147,417, having risen 24.3% since the introduction of the SDLT holiday.

* **Richmondshire:** 31.54%
* **Rossendale:** 24.25%
* **North Norfolk:** 23.09%
* **North Devon:** 18.95%
* **Cotswold:** 18.06%
* **Hastings:** 17.94%
* **Shropshire:** 17.73%
* **West Devon:** 17.71%
* **Derbyshire Dales:** 17.62%
* **Salford:** 17.18%

### Are there any exceptions?

Not everywhere in England has seen a big increase in property price. In some of the more affluent areas of London, the average property price for first time buyers has dropped significantly.

In Kensington & Chelsea for example, the first time buyer’s home cost £1.1 million in July 2020. Now however, the price has dropped to just over £1 million, a decrease of - 6.5%. 

Other decreases include:

* **Hackney:** - 4.1%
* **City of London:** - 4%
* **City of Westminster:** -3% 
* **Southwark** -1.4%

### What the Stamp Duty Holiday means for first time home buyers

While the Stamp Duty Holiday has been a huge success in injecting life into a threatened housing market, it’s undeniable that first time buyers have been marginalised. While many existing homeowners have benefited from a boost to the value of their property, most first-time buyers are worse off when it comes to taking that first step onto the property ladder. 

### What is Stamp Duty?

Stamp Duty Land Tax or SDLT is a government tax on property and land transactions. The amount of tax you pay is proportionate to the amount of money you spend on property or land.

Young woman sitting at a desk with papers and thinking about taxes.

pexels-mikhail-nilov-6964107

A year after the Stamp Duty Holiday was introduced, our data shows that first time buyers are paying up to 31.5% more for properties across England.

First time buyers pay 31% more due to Stamp Duty Holiday

A year after the Stamp Duty Holiday was introduced, our data shows that first time buyers are paying up to 31.5% more for properties across England.


With the Stamp Duty deadline over and done, the UK housing market has been left to recuperate following its blazing period through March to June. As many experts predicted, house sales have experienced a decline. House prices however, are continuing to soar thanks to a sustained demand from UK house buyers. This demand is particularly notable in England’s coastal addresses. An onslaught of buyers looking to relocate from cities has seen the average price of some seaside areas increase by over £100,000.

### UK house sales nosedived in July 

On the back-end of June’s Stamp Duty deadline, July saw UK house sales nosedive by almost two-thirds after home buyers rushed to complete the purchase of their new homes. While the end of the Stamp Duty deadline has tempered the number of house sales, their prices are still on the high. [June's UK House Price Index report](https://landregistry.data.gov.uk/app/ukhpi "UK House Price Index") observed an increase of 4.5% with an average price of £265,668.

Diminishing house sales and rising house prices have done nothing to reduce buyer demand, with Zoopla reporting an increase of 20.5% above the 2020 average. [The Guardian](https://www.theguardian.com/money/2021/aug/24/uk-house-sales-stamp-duty-holiday-deadline-tax-break "The Guardian - UK House Sales") has cited ‘the pandemic and growth of home working’ as key factors to this strong demand. 

With almost two years of lockdowns under their belts, it's no wonder that the average UK buyer is searching for greater space and comfort. Unfortunately, [The Telegraph’s Rachel Mortimer](https://www.telegraph.co.uk/property/buy/acute-shortage-homes-sale-last-2022/ "The Telegraph - Acute Shortage") has reported this ‘acute’ shortage of homes for sale could last well into 2022. With a depleted stock and a sustained demand, it’s unlikely that house prices will go down before the end of 2021.

### Home buyers flock to coastal addresses

Last month, [we revealed the top eight postcodes](https://www.thesun.co.uk/money/15723069/eight-postcodes-house-prices-rocketing/ "The Sun - Eight Postcodes") where house prices surged by almost £100,000, with sunny countryside counties like Cornwall and South Hampshire among the most popular. 

This heightened interest in coastal addresses suggests a shift in buyer attention from traditional city hotspots. In a [similar study of 120 coastal areas](https://www.rightmove.co.uk/press-centre/coastal-homes-sell-twenty-days-quicker-than-pre-pandemic-as-city-to-seaside-demand-doubles/ "Rightmove Coastal Homes Study"), Rightmove recorded an increase of 115% in city dwellers enquiring about homes for sale in coastal locations. They concluded that this interest could increase competition among buyers.

While coastal addresses are no doubt seeing a surge in popularity, Zoopla has curtailed any doubts that London might suffer as a result. In [their 23rd July press release](https://www.zoopla.co.uk/press/releases/zoopla-reveals-how-property-size-impacts-buyer-demand-for-new-homes/ "Zoopla - Property Size"), they reported that the demand for properties is ‘more concentrated’ in London, with average buyers searching for new homes within a five mile radius.


a folded newspaper lying next to a cup of coffee on a wooden table 

property-news-may-14

House sales nosedive, while demand continues to inflate prices.

Property News August 27th | House sales nosedive

Property news of the week: August 27th 2021

We're full to the brim of festive cheer here at GetAgent, and we've got the carols on full blast. 

One of our favourites has to be 'The Twelve Days of Christmas', so in true GetAgent fashion we analysed the property prices on all the roads in the UK that matched the gifts given in the song. It turns out the final gift: 'drummers drumming' is indeed the most valuable. 

![twelve-days-christmas](//images.ctfassets.net/us6n8ous4bz0/3t5wnHP2XPEESrOHhqAyPs/f8bf88ebf2f3cffdd17bca132ab24975/12_DAYS_XMAS_IMAGE.jpg)


pile of Christmas presents wrapped in red and white wrapping paper and tied with bows

christmas-gift-house-prices

We analysed the property prices on all the roads in the UK that matched the gifts given in the famous carol: 'The Twelve Days of Christmas'

The Twelve Roads of Christmas

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