Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Stark North-South Divide in Stamp Duty for First-Time Buyers
Eight out of ten first-time buyers in London pay stamp duty, while fewer than one in ten do so in the North of England, according to new analysis by Zoopla. The research, which examined first-time buyer enquiries to properties listed by estate agents and housebuilders, calculated stamp duty based on asking prices across the country.
Across England, Zoopla found that four out of ten first-time buyers pay stamp duty. However, the analysis highlights a significant North-South divide, with nearly 80% of first-time buyers in London liable for the tax. In the South East and East of England, around half of first-time buyers pay stamp duty, as average purchase prices exceed the £300,000 first-time buyer relief threshold.
In contrast, the proportion of first-time buyers paying stamp duty is much lower in the North. Only 2.1% of first-time buyers in the North East pay the tax, rising to 3.8% in Yorkshire and the Humber, 6.2% in the North West, and 9.3% in the West Midlands.
Zoopla noted that if the stamp duty threshold had increased in line with house prices, it would now stand at around £380,000. This could potentially save buyers purchasing between £250,000 and £380,000 up to £6,500 in stamp duty.
The findings are particularly relevant for letting agents and inventory clerks monitoring regional market trends and the impact of stamp duty on first-time buyer activity. The data underscores the ongoing affordability challenges in London and the South, where higher property prices mean more buyers are subject to stamp duty costs.
Source: Mortgage Strategy