Coventry Building Society has set out five key statistics that show how the end of the stamp duty deadline next month has altered the homebuying market over the last year.
On 1 April, the stamp duty rate threshold will fall to £125,000 from £250,000 for home movers, and to £325,000 from £400,000 for first-time buyers — after Chancellor Rachel Reeves in her October Budget failed to extend these lower levels first set out in the unfunded Liz Truss September 2022 Budget.
1) The percentage of transactions under £250,000 has tumbled
Just 22.2% of property transactions fell below the £250,000 stamp duty threshold last year, compared to a decade ago when 60.6% of transactions were below this sum
2) Almost half of homebuyers are now paying 5%
48.8% of property purchases last year were between £250,000 and £500,000, meaning almost half of buyers paid stamp duty at 5% of the house price. This is much higher than in 2014 when only 29.5% of buyers were paying the 5% rate
3) The average stamp duty bill has risen to £9,935
Average stamp duty charges have risen by £3,700 over the last ten years, going from £6,235 in 2014 to £9,935 last year – despite the tax thresholds currently being lower
4) One in five FTBs pays stamp duty
Last year 22.4% of FTBs were still liable for stamp duty
5) Additional property transactions – such as those with 5% stamp duty surcharges – have fallen below average
Additional property transactions – such as buy-to-let properties – are down 19.2%, compared to 2017 when these records began
Coventry Building Society head of intermediary relationships Jonathan Stinton says: “Just a decade ago, the majority of property transactions were under £250,000 and homebuyers paid little to no stamp duty.
“Now, with house prices climbing and nearly half of buyers paying 5%, homeownership is becoming more expensive at every turn.
“We expect more people delaying their moves or staying put altogether, slowing the market down.
“At the same time, the stamp duty surcharge on additional properties is stifling rental supply, making it tougher and more expensive for renters.
“With affordability already stretched, these changes will push homeownership dreams even further out of reach for many buyers.”
