From City AM:
STAMP duty is helping to cool the housing market, saving buyers over £260m in the past two years, according to analysis from property website Zoopla.
Research conducted by the website demonstrates the effect of the “dead zone” for stamp duty. Since the tax rises on the price of the whole property if it edges over £125,000 or £250,000, prices are bunched just below the thresholds, saving buyers money.
The firm suggests that buyers have been able to acquire around 37,000 properties for a slightly more modest price to avoid the slab system of duty since April 2012. The duty means that if a house costs £249,999, the whole value is taxed at one per cent, whereas if it costs £250,001, it is taxed at three per cent.
Because of this effect, 25,109 more houses than expected were sold for just under £250,000 during the period, and 6,413 more than expected for just under £125,000. At the £250,000 mark, Zoopla says that the average price reduction is saving buyers £7,176.
“The current stamp duty system helps dampen price rises and helped thousands of buyers from having to overpay for their property,” said Zoopla’s Lawrence Hall.
"The actual stamp duty saving is probably as much again. What's not to like?"
Tuesday, 18 March 2014
From City AM:
My latest blogpost: "Stamp duty thresholds have saved home buyers £260m since 2012"Tweet this! Posted by Mark Wadsworth at 10:22