30 March 2015
More than two thirds (69%) of homebuyers across the UK are likely to benefit from the new Stamp Duty regime, with 29% seeing no change and just 2% likely to pay more* according to data produced by Nationwide Building Society, the mutual which campaigned for changes to be made.
Based on 2013/14 transactions data (from the Land Registry, HMRC and CML Regulated Mortgage Survey) and assuming an average saving of c£1,580 across a total of 647,000 transactions benefiting from the changes, homebuyers in the UK could save £1 billion as a result of the Stamp Duty changes.
For homebuyers in England, Wales and Northern Ireland, the welcome introduction of a progressive Stamp Duty Land Tax system came into force on 4 December 2014, while for Scottish buyers the Land and Buildings Transaction Tax changes are to be implemented on 1 April 2015.
As a result, the average tax payable on the purchase of a home is likely to fall across the UK, with the average saving for each country (based on Nationwide’s analysis of Land Registry and Regulated Mortgage Survey data) projected to be:
Graham Beale, Nationwide’s Chief Executive, commented: “It’s gratifying to see the changes that Nationwide campaigned so long for, making such a substantial difference to the pockets of homebuyers across the UK.
“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.”
For both England and Scotland, most likely to benefit from the changes are those looking to move up the housing ladder – though duty payable on properties over £330,000 will now be more expensive in Scotland than in England.
The potential effects on duty paying winners and losers will be –
||SDLT - Old system
||SDLT - England, Wales & N Ireland
||LBTT – Scotland