First-time buyers in these local authorities likely to pay stamp duty after changes from April, study finds

Currently, first-time buyers don’t pay stamp duty on home prices up to £425,000, but from April this threshold decreases to £300,000. A new study has revealed the areas of England where first-time buyers can expect to pay stamp duty, following changes in April.

The study, conducted by property information site Property Buyers Today, assessed the average first-time buyer home price in each English local authority. They then calculated the additional stamp duty costs under the new tax rules for areas that were previously exempt due to property prices below the £450,000 threshold.

Top 20 – New local authorities experiencing largest increase in stamp duty

The study revealed that Hounslow in west London can expect to see the largest jump in stamp duty paid by first-time buyers. First-time buyers paying the average house price of £416,097 will need to pay £5,805 in SDLT from 1 April.

Greenwich in southeast London will see the second highest amount now paid, with stamp duty costing £5,643. The average first-time buyer property costs £412,854 and residents previously benefited from not having to pay SDLT.

In third place is Epsom and Ewell in Surrey. Here, first-time buyers will now be paying £5,518 for an average first-time property price of £410,355.

In fourth place is Sevenoaks in Kent. A commuter town for many who work in London, first-time buyers will now be paying £5,408 in SDLT for an average property price of £408,152.

Fifth on the list is Hertsmere in Hertfordshire, where first-time buyers can expect to pay £5,372 in SDLTfor an average property costing £407,448.

South Oxfordshire ranks in sixth place with SDLT for an average first-time buyer property costing £5,134, followed in seventh place by Lewisham where the average first-time buyer will now need to pay £5,111 on property costing £402,221.

In eighth place is Bromley in Greater London. Here, first-time buyers paying the average first-time property cost of £397,962 can expect to pay £4,898 in stamp duty.

Rounding off the list are Newham in London, where first-time buyers expect to pay £4,857, and Guildford in Surrey, where first-time buyers will pay £4,735 for the average property price of £394,708.

Commenting on the findings, Saif Derzi, Founder of Property Buyers Today said, “With stamp duty affecting thousands of potential first-time buyers, the topic brings up the issue of affordability.

“Aspiring homeowners will need to save for longer to cover the new cost of stamp duty, and this change will especially hit those in the London and South East region. Though many see the South and London as being generally well off, it is also true that families and couples who have been saving for their first property will be hard-hit by the new changes.

“The change in these rules will mean those looking to buy may consider looking at smaller, cheaper housing potentially outside of their ideal location. This shift underscores the growing financial pressure on those looking to get on the property ladder.”

Credit: https://propertybuyerstoday.co.uk/sell-house-fast/

Source:

Gov.uk - Stamp Duty Land Tax

HM Land Registry – Average first-time buyer property prices

Methodology:

1. Using a list of all English local authorities, the average first-time buyer home price was found.
2. Each local authority was assessed using the previous Stamp Duty Land Tax (SDLT), then calculations were made based on the new changes.
3. Every area was then ranked according to the biggest changes. For the release, only areas that were previously exempt but now need to pay SDLT were included. ‘Outer London’ was excluded from the final results as this encompassed multiple other local authorities.