Stamp Duty holiday means 85% of buyers pay no tax on their purchase
Homebuyers have saved a total £108m in tax as a result of the Stamp Duty holiday, according to Benham and Reeves.
The lettings and estate agent found that 85% of buyers have escaped paying any Stamp Duty since the Government introduced the temporary tax break on purchases up to £500,000.
It said there were 20,238 transactions between the holiday being launched on 8th July and the end of August alone, with a sold value of £6.7bn.
In normal market conditions, £189m would have been paid in Stamp Duty. With the holiday in place, this has fallen to £80.8m, a total of saving of £108,126,686 in just two months.
Based on the current average saving, the total saved by March – when the Stamp Duty holiday ends – could be an enormous £524.9m.
In some areas, almost all buyers have escaped the property purchase tax.
Southampton, Plymouth, Sheffield, Newcastle and Nottingham have seen 98% of homebuyers pay no Stamp Duty at all since the holiday started.
Not surprisingly, London is home to the lowest number of Stamp Duty exempt transitions as a percentage of all transactions at only 48%. However, homebuyers in the capital have collectively saved the most as a result of the holiday, nearly £25.2m.
Director of Benham and Reeves, Marc von Grundherr, said: “Given the fact that the holiday has only been in place for a few short months, the money saved by homebuyers as a result is quite astounding.
“Of course, it has caused demand to go through the roof and so you could argue that in ‘regular’ market conditions the saving wouldn’t be quite as considerable. However, it has helped the housing market bounce back from pandemic uncertainty at an alarming rate, helping to avoid a property price crash, while benefiting thousands of homebuyers in the process.
“It will be interesting to see the final scores on the doors once the holiday ends but at this rate, the money saved is going to be huge.”