"It has caused demand to go through the roof and so you could argue that in ‘regular’ market conditions the saving wouldn’t be quite as considerable."
The stamp duty holiday has already saved homebuyers £108m, with 85% paying no tax on their purchase, according to new resarch from lettings and estate agent, Benham and Reeves.
Benham and Reeves analysed sold price records across England from the Land Registry between the launch of the stamp duty holiday on 8th July and August 31st, the latest available data.
The research shows that there have been 20,238 transactions since the holiday was launched with a sold value of £6.7bn.
Benham and Reeves estimates that 85% of these transactions have fallen below the £500,000 price threshold and paid no stamp duty as a result.
In regular market conditions, £189m would have been paid in stamp duty. With the holiday in place, this has fallen to £80.8m, a total of saving of £108,126,686 in just two months.
Based on the current average saving, the total saved come March could be £524.9m over the 267 day holiday.
Southampton, Plymouth, Sheffield, Newcastle and Nottingham have been amongst some of the major cities to see the biggest benefit for homebuyers. 98% of all transactions in these cities since the stamp duty holiday was implemented have been at £500,000 or below, with no stamp duty paid as a result.
London is home to the lowest number of stamp duty exempt transitions as a percentage of all transactions at 48%. However, the capital has seen homebuyers save the most by far. Since the stamp duty holiday started, London homebuyers have saved nearly £25.2m alone.
Director of Benham and Reeves, Marc von Grundherr, commented: “Given the fact that the holiday has only been in place for a few short months, the money saved by homebuyers as a result is quite astounding.
"Of course, it has caused demand to go through the roof and so you could argue that in ‘regular’ market conditions the saving wouldn’t be quite as considerable.
"However, it has helped the housing market bounce back from pandemic uncertainty at an alarming rate, helping to avoid a property price crash, while benefiting thousands of homebuyers in the process.
"It will be interesting to see the final scores on the doors once the holiday ends but at this rate, the money saved is going to be huge.
You could argue that the tax should be abolished completely as it’s nothing more than an archaic money grab from the Government, to the detriment of those who are already stretching to afford the most expensive purchase in life. Based on these figures, you wouldn’t be the only one and it does highlight just how much is paid to the Government via stamp duty tax.”