Stamp duty changes make homebuyers £4,500 better off

10th December 2015

The average homebuyer is £4,500 better off under the new progressive stamp duty structure, according to mortgage and remortgage provider Halifax.

Since the changes came into force a year ago, the typical homebuyer has paid a total of £3,676 in stamp duty (based on the current average house price of £273,531 in England and Wales). Under the previous flat structure, a buyer paying this price would have been subject to stamp duty payments of £8,205, equating to a saving of £4,529.

The ‘tipping point’ price at which homebuyers are actually worse off under the new stamp duty structure is £938,000.

Four-fifths (80%) of all home purchases in England and Wales between May 2015 and July 2015 were above the starting stamp duty threshold of £125,000, ranging from nearly all sales in London to 55-60% of sales in northern England and Wales. This compares to 71% in 2006, when the starting threshold was initially raised to its current level. The starting threshold would now be £157,000 (£32,000 higher) if it were raised in line with house price inflation since 2006.

Craig McKinlay, mortgages director at Halifax, said: “The changes made to stamp duty a year ago have been of significant benefit to many buyers. Only those purchasing the most expensive homes are worse off.”

*2 year fixed with TSB 1.09% then 3.59% - APRC is 3.3% Max LTV is 60%. Quoted on 27th May 2020.