Halifax Reports: Four in Ten First-Time Buyers have Benefitted from Stamp Duty Holiday
(firmenpresse) - LONDON, UNITED KINGDOM -- (Marketwire) -- 03/21/12 -- An extra four in ten have been exempt from paying stamp duty as a result of the government raising the starting threshold from GBP 125,000 to GBP 250,000(1) over the past two years, according to estimates from Halifax.
The temporary increase in the threshold has meant that 95% of first-time buyers over the period have not had to pay stamp duty.
An estimated 150,000 first-time buyers(2) have benefitted from the increase in the threshold over the past two years with approximately 380,000 first-time buyers paying no stamp duty.
Returning the starting threshold to GBP 125,000 will result in nearly 45% of .
Regional Differences (Table 1)
The South East and Greater London have benefitted most from the change with around seven in ten first-time buyers having to pay no stamp duty directly due to the raising of the threshold from GBP 125,000 to GBP 250,000.
The North and Northern Ireland have benefitted the least with only one in six first-time buyers exempt from the tax as a result of the increase.
Only 4% of first-time buyers in Greater London will be exempt from stamp duty when the starting threshold returns to GBP 125,000. Four in five first-time buyers in the South East will pay the tax.
in other parts of the country with less than one in five paying the tax in the North and Northern Ireland.
Martin Ellis, Halifax housing economist, commented:
"The stamp duty holiday has directly helped four in ten first-time buyers over the past two years. Regionally, the impact has varied considerably with around seven in ten first-time buyers in London and the South East exempt from the tax as a direct result of the temporary change. Returning the threshold to GBP 125,000 will hit those buying their first home in these parts of the country most.
"The doubling in the starting threshold has been a significant benefit to those who have benefitted during a time of economic and financial difficulty for many. A first-time buyer making a purchase of GBP 200,000 will see their buying costs increase by GBP 2,000."
OTHER KEY FACTS
Higher stamp duty thresholds unchanged since their introduction in July 1997.
If the higher stamp duty thresholds were increased in line with house price inflation since July 1997 - when the GBP 250,000 and GBP 500,000 stamp duty thresholds were introduced - they would now stand at GBP 584,000 and GBP 1,169,000 respectively.
More than one in four FTB purchases in London have still been liable to stamp duty...
Whilst areas outside London and the South East have benefitted most from the stamp duty holiday, more than a quarter (27%) of first-time buyer purchases in the capital and 6% of first-time buyer purchases in the South East have still had to pay stamp duty.
...whilst nearly all FTB purchases outside London and the South East have been exempt.
In contrast, over 95% of first-time buyer purchases have been below the temporary starting threshold of GBP 250,000 in all regions outside Greater London and the South East. These differences are explained by the much higher percentage of first-time buyer purchases above GBP 250,000 in London and the South East.
Significant rise in residential stamp duty revenue over the past decade
There was a more than threefold increase in revenue from GBP 2.15bn in 2000-01 to a peak of GBP 6.68bn in 2007-08. Revenue has since fallen to GBP 4.04bn in 2010-11(3).
Higher stamp duty bands generate almost 90% of revenue
Residential stamp duty revenue raised at the higher stamp duty bands (i.e. above GBP 250,000) accounted for 87% (GBP 3.5bn) of all residential stamp duty revenue in 2010-11. Five years earlier in 2005-06, the higher stamp duty bands contributed 74%. )
Editor's Notes
(1) From 25th March 2010 the lowest stamp duty threshold was raised from GBP 125,000 to GBP 250,000 for first-time buyers for two years until 24th March 2012.
(2) Mortgage borrowers only. Based on CML figures.
(3) Provisional.
BACKGROUND ON STAMP DUTY
Contacts:
Halifax
Nick Osbourne
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 21.03.2012 - 07:55 Uhr
Sprache: Deutsch
News-ID 1095067
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
LONDON, UNITED KINGDOM
Phone:
Kategorie:
Local
Anmerkungen:
Diese Pressemitteilung wurde bisher 175 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Halifax Reports: Four in Ten First-Time Buyers have Benefitted from Stamp Duty Holiday
"
steht unter der journalistisch-redaktionellen Verantwortung von
Halifax (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
