Just one in ten FTBs pay Stamp Duty in the North

Published on

Just one in ten first-time buyers pay Stamp Duty in the North, compared to eight in ten in London, new research from Zoopla shows.

Six in ten first-time buyers nationally pay nothing – but in the South East and East of England, half now face a bill as median prices cross the £300,000 relief threshold.

For existing home owners moving to a new property, Stamp Duty is near-unavoidable: more than four in five pay in every English region bar the North East, the research shows.

In London, home owners moving home pay more than three pence in every pound of the purchase price as Stamp Duty; in Yorkshire or the North West, less than one penny.

Stamp Duty Costs and Payment Rates by Region
Region
FTBs paying
FTB median bill
FTB rate per £
Home movers paying
HO median bill
HO rate per £
North East
2.1%
£3,750
1.0p/£1
63.5%
£1,500
0.8p/£1
Yorkshire
3.8%
£2,500
0.7p/£1
82.8%
£2,200
0.9p/£1
North West
6.2%
£2,500
0.7p/£1
84.0%
£2,200
0.9p/£1
W Midlands
9.3%
£2,500
0.7p/£1
90.4%
£3,250
1.2p/£1
East Midlands
12.2%
£2,500
0.7p/£1
91.5%
£3,000
1.2p/£1
South West
21.2%
£2,500
0.7p/£1
92.5%
£5,000
1.7p/£1
South East
51.0%
£5,000
1.3p/£1
96.6%
£11,250
2.7p/£1
Eastern
52.0%
£4,500
1.2p/£1
96.4%
£10,000
2.5p/£1
London
79.7%
£8,750
1.8p/£1
99.1%
£20,000
3.3p/£1

Richard Donnell, executive director at Zoopla, comments: “Where you’re buying determines what you pay in stamp duty if you’re a first-time buyer.

“In the North and Midlands, the £300,000 takes nine in ten first-time buyers out of paying anything extra to buy their home.

“In London and the South East, the cost of buying an average first time buyer homes is above £300,000 for many buyers which means the majority of first-time buyers face a stamp duty bill on top of an often sizable deposit.”

He added: “For home movers, stamp duty is a near-certain cost wherever you live – and in Southern England it runs to five figures.

“Six in ten property purchases are made by existing homeowners. When the cost of moving becomes a meaningful friction, some of those moves don’t happen, especially with lower levels of house price inflation in recent years across southern England. ”

 

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Novus Strategy to host Digital Disruption Live event

Lenders and mortgage experts will explore how Home Buying Reform and Smart Data are...

Foundation reduces BTL rates by up to 0.25%

Foundation, the intermediary-only specialist lender, has reduced rates across its buy-to-let range by up...

Hodge Bank partners with Mortgage Broker Tools

The partnership means Mortgage Broker Tools’ broker members can now access Hodge’s specialist mortgage...

Cambridge BS opens up 98% LTV to all brokers

The Cambridge Building Society is making its 98% LTV first-time-buyer product available to all...

Barclays latest lender to cut rates

Barclays is the latest lender to lower its mortgage rates, reducing selected residential products...

Latest publication

Other news

Novus Strategy to host Digital Disruption Live event

Lenders and mortgage experts will explore how Home Buying Reform and Smart Data are...

Foundation reduces BTL rates by up to 0.25%

Foundation, the intermediary-only specialist lender, has reduced rates across its buy-to-let range by up...

Hodge Bank partners with Mortgage Broker Tools

The partnership means Mortgage Broker Tools’ broker members can now access Hodge’s specialist mortgage...