Less than one in 10 properties for sale online in England are now exempt from stamp duty, new research has found.
Rightmove’s results reveal how few homes are available for purchase without buyers being impacted by the tax.
He said only 9% of the houses for sale on his website have an asking price of £ 125,000 or less – the threshold below which no stamp duty is paid if the property is purchased as a primary residence.
This follows the end of the stamp duty holiday, which was introduced last year to boost the housing market amid the pandemic.
Rightmove said only 9% of homes for sale on its website have an asking price of £ 125,000 or less
The housing market has been hot since the Treasury announced that the first £ 500,000 of a property purchase would be tax free.
The relief was extended until the end of June, after which it was halved to £ 250,000. The threshold fell to £ 125,000 on October 1.
Rightmove said the findings only apply to England and exclude first-time buyers.
First-time buyers pay no stamp duty if the house they buy is £ 300,000 or less.
They pay tax at a rate of 5 percent on the amount between £ 300,000 and £ 500,000.
More than half of homes in England have an asking price of £ 300,000 or less, and are therefore exempt from stamp duty for first-time buyers, according to Rightmove.
Tim Bannister of Rightmove said: “Hundreds of thousands of buyers have benefited from stamp duty savings over the past year, which has prompted people to relocate.
“That being said, we are still seeing much higher levels of competition for properties in the market, compared to before the pandemic started, so we expect the market to remain busy for the rest of the year. and next year.
“It’s important to remember that there are still savings to be made, especially for first-time buyers, so that doesn’t mean the savings are over.”
These stamp duty savings include those that still apply to properties at £ 125,000 or less, and £ 300,000 or less for first-time buyers.
|Sep-21||Jul 20||Av requested price change||Av change of asking price|
|Wales||£ 232,440||£ 206,900||£ 25,540||12.3%|
|South West||£ 353,213||£ 320,361||£ 32,852||10.3%|
|East of England||£ 395,983||£ 362,975||£ 33,008||9.1%|
|North West||£ 227,441||£ 208,330||£ 19,111||9.2%|
|Yorkshire and the Humber||£ 219,116||£ 204,050||£ 15,066||7.4%|
|East Midlands||£ 264,554||£ 238,523||£ 26,031||10.9%|
|West Midlands||£ 260,706||£ 239,945||£ 20,761||8.7%|
|South East||£ 453,551||£ 418,795||£ 34,756||8.3%|
|Northeast||£ 165,628||£ 157,080||£ 8,548||5.4%|
|Scotland||£ 173,417||£ 166,322||£ 7,095||4.3%|
|London||£ 638,285||£ 641,854||– £ 3,569||-0.6%|
|national||£ 338,462||£ 320,265||£ 18,197||5.7%|
|national first-time buyers||£ 209,056||£ 199,340||£ 9,716||4.9%|
Rightmove explained that since the announcement of the stamp duty holidays in July 2020, asking prices in Britain have risen by more than £ 18,000, the equivalent of 6%. Asking prices have also increased by just under £ 10,000 for first-time buyers, the equivalent of 5%.
There are now signs that asking prices are starting to stabilize, but competition among homebuyers is double that before the pandemic, he said.
While housing inflation slowed in September, house prices continue to rise at double-digit rates, according to the latest figures from the Nationwide Building Society.
That means £ 22,613 was added to the cost of an average house in just one year, with the average house price rising 10% to £ 248,742.
The construction company said first-time buyers now have to save 113% of their entire annual salary for a typical real estate security deposit.
Nationwide Chief Economist Robert Gardner said: “Raising a deposit remains the biggest hurdle for most potential first-time buyers. A 20 percent down payment on a typical home for a first-time buyer is now about 113 percent of gross income, a record. ‘
The Nationwide Building Society said £ 22,613 was added to the cost of an average house in just one year, with the average house price rising 10% to £ 248,742.
Real estate agents said that although the stamp duty holiday has now ended, demand from buyers continues due to low mortgage rates.
Nick Barnes, of Chestertons real estate agents, said: “Despite the dust that slowly settled during the stamp duty holidays, the September real estate market showed few signs of slowing down from August.
“At our 31 offices in London, September visits were up 29% and portal inquiries 33% compared to last month, with buyers returning from their summer vacation and resuming their normal lives.
“We expect the market to remain buoyant over the next few months at least as buyers will be eager to finalize their move before Christmas. Buyer demand continues to be supported by a very favorable mortgage market with lenders still eager. get new business, offering attractive mortgage interest rates. ‘