79% of the property market will remain SDLT free for first-time buyers

Almost 80% of the property market will remain SDLT free for first-time buyers, even after the current holiday extension has expired, according to research by Ascend Properties.

Related topics:  Mortgages
Rozi Jones
15th April 2021
couple children move house first buyer FTB
"This stamp duty FOMO need not worry the vast majority of first-time buyers, as they will continue to pay no tax regardless."

While all residential transactions are currently enjoying no stamp duty owed on purchases as high as £500,000, this perk will remain in place for first-time buyers purchasing up to £300,000 beyond the final September cut off.

The average first-time buyer in England currently pays £221,743 to get a foot on the ladder, falling well within the £300,000 threshold.

As a result, 79% of all local authorities in England are home to an average first-time buyer house price that sits below the stamp duty free threshold of £300,000.

At a regional level, there is just one area of the market where first-time buyers will wave goodbye to a stamp duty free purchase when the current holiday deadline is done. That is, unsurprisingly, London, where the average first-time buyer currently pays £433,631 to get on the ladder. However, they will still benefit from a reduced level of tax on purchases up to the £500,000 mark.

In terms of overall affordability, the North East ranks top with the average first-time buyer house price coming in at just £118,118, along with Yorkshire and the Humber (£152,827) and the North West (£155,088).

Again, the North offers some of the greatest overall affordability with first-time buyers in Burnley (£90,048), Hartlepool (£90,882) and County Durham (£97,388) paying the lowest price when buying their first home.

Managing director of Ascend Properties, Ged McPartlin, commented: “An air of panic has hung over the market of late, as long delays during the transaction process have caused many buyers to worry that they might miss out on the stamp duty holiday incentive.

"This panic has been heightened with talks of a market cliff edge awaiting us once the clock does expire, despite the Government’s attempts to wean the market back to normality with a staggered deadline.

"The good news is, that this stamp duty FOMO need not worry the vast majority of first-time buyers, as they will continue to pay no tax regardless. With the additional carrots of a refreshed Help to Buy scheme and the return of 95% mortgage products, not to mention the fact interest rates remain incredibly low, there’s arguably never been a better time to get a foot on the ladder.

"So our advice to those first-time buyers being deterred by current market horror stories is to keep calm and get buying."

More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.