Homebuyers in England and Wales are set to save £300m before the stamp duty taper runs out in September, with those in the South East gaining the most, according to data from Muve.
The conveyancer says buyers can still save as much as £2,500 for those who complete purchases over the next two months, with buyers in the South East predicted to gain the most, netting 23% of the country’s savings from the remaining relief.
The firm bases its estimates on historical data from the Land Registry and its own research on first-time buyers to gauge the future value of stamp duty savings between July and September.
On 1 July, the stamp duty nil-rate threshold was reduced from £500,000 to £250,000 until the end of September.
From 1 October, the threshold will return to £125,000 – or £300,000 for FTBs purchasing a property worth up to £500,000.
Muve says: “The significant cut in place until 30 June helped thousands of people cut the cost of buying a home and triggered a record 22% rise in transactions volumes.
“Despite the fact that the more considerable stamp duty savings have now come to an end, there is still plenty of money to be saved under the new rate.”
London is set to be the second-highest beneficiary of the stamp duty taper set to take a 16% share of national homebuyers savings, with the East of England coming in third with 14%.
The North East is estimated to benefit the least with a 2% share of the taper, followed by Wales with 3% and Yorkshire with 6%.
Muve chief executive David Jabbari says: “While many might have believed that stamp duty savings were washed away as the deadline of 30 June rolled around, that isn’t the case.
“There are still significant savings to be made for those who complete on their new home before 1 October.
“The conveyancing industry has been a very busy place since stamp duty relief was introduced in 2020, and despite the deadline for the biggest savings having passed in June this year, we still find ourselves extremely busy.
“The housing market is in a very healthy state right now, and that is something that the government will be looking to sustain as we begin the economic recovery from the Covid-19 pandemic.”
