New analysis from Muve, a leading conveyancer in the UK, uses historical data from the Land Registry and its own data on First Time Buyers to estimate the future value of Stamp Duty Land Tax (SDLT) savings over the course of Q3 2021.
The significant cut in place until 30th June helped thousands of people cut the cost of buying a home and triggered a record 22% rise in transaction volumes. Despite the fact that the more considerable stamp duty savings have now come to an end, there is still plenty of money to be saved under the new rate.
From July 1st to September 30th, a smaller but still significant stamp duty cut is in place, reducing SDLT by as much as £2,500 for those buyers who complete before September 30th. This cut is worth more than £300 million and will ensure that the property market stays buoyant for months to come.
It is estimated that over the next three months, 53% of house buyers will take advantage of SDLT relief, with the remaining 47% being First Time Buyers (FTBs) and those purchasing low-value properties below £125,000, who do not benefit from the added SDLT saving.
Across England and Wales, First Time Buyers make up more than a third of purchases each year. Under the current rules, FTBs are exempt from Stamp Duty if the house they are buying is less than £300,000, meaning they are set to save thousands of pounds in SDLT.