Data produced by the Nationwide Building Society has revealed that 69% of UK homebuyers are likely to benefit from the new Stamp Duty reform that was announced last year.
According to the research, which was based on 2013/2014 transactions data from the Land Registry, HMRC and the Council of Mortgage Lenders Regulated Mortgage Survey, there will be an average saving of £1,580 across 647,000 sales. In total, buyers in the UK could save £1 billion as a result of changes to Stamp Duty.
The majority of UK homebuyers will save money however 29% of buyers will see no change 2% will pay more.
Stamp Duty reform
For buyers located in England, Wales and Northern Ireland, changed to Stamp Duty were enforced on 4 December 2014. Buyers located in Scotland have had to wait until 1 April 2015 for changes to be made to the Land and Buildings Transaction Tax.
New Stamp Duty rates:
Changes to the amount of tax payable on the purchase of a property are likely to decrease for most buyers. The average saving for England is projected at £1,603, £1,622 in Scotland, £1,219 in Wales and £748 in Northern Ireland.
‘It’s gratifying to see the changes that Nationwide campaigned so long for, making such a substantial difference to the pockets of home buyers across the UK,’ Graham Beale, Nationwide’s chief executive commented.
‘With the implementation of the new progressive approach in Scotland just around the corner, buyers across the UK will now only pay for the amount of their property value over each new threshold, a victory for fairness and another encouraging step for all those considering a move on to or further up the housing ladder,’ Beale added.
It has been suggested that house buyers who are looking to move up the housing ladder will benefit the most from the changes to Stamp Duty.