UK homebuyers to save £2500 with Stamp Duty cuts

The Government's latest Stamp Duty cuts have shown just how much UK homebuyers are set to save when purchasing their homes.

Stamp Duty Land Tax (SDLT) will now only be payable on property purchases over the £250,000 price threshold, saving the average homebuyer as much as £2,500.

Based on the average UK house price, we analysed the current market to reveal just how many homebuyers are due to benefit from this maximum saving.

Saving the maximum with no Stamp Duty

We found that 32% of local authorities are currently home to an average house price below the new threshold of £250,000. As a result, the average homebuyer in these areas will pay no Stamp Duty on their purchase.

However, for those who still pay Stamp Duty, the benefits of the latest cuts are still quite substantial.

Which area in the UK will save the most money?

Homebuyers in London, the South West, East of England, South East and the West Midlands all stand to save a maximum of £2,500.

Due to the lower average cost of buying a home, in the East Midlands, the average homebuyer will save £2,455. This falls to £1,842 in the North West, £1,739 in Yorkshire and the Humber and £765 in the North East.

Indeed, after analysing savings across 308 local authorities in England, we found that across 68% of them, the average homebuyer stands to make the maximum saving of £2,500 on their property purchase.

A further 15% of local authorities will find that homebuyers could be saving between £1,501 and £2,499. This saving may sit as high as £501 to £1,500 across a further 13% of the market.

Not everyone will benefit from the new Stamp Duty cuts

In only 4% of areas will homebuyers save between £1 to £500. The small town of Burnley will be the only area in England where no savings will be made. This is because the average house price sat below the original threshold at which the tax was payable before the cuts.

‘Stamp Duty cuts will help rejuvenate the market’

- GetAgent CEO Colby Short

“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.”

Data and Methodology

Table shows previous and new rate of Stamp Duty payable on the average HP in each region

Table shows what percentage the average homebuyer will be saving across 308 local authorities

Percentages related to 308 local authorities in England, minus 24 county councils and the Isle of Scilly