Stamp duty payments differ significantly between buyers in the South and the North of England, with fewer than one in ten first-time buyers in the North paying the tax, according to new data from Zoopla. London and the South East see the highest proportion of first-time buyers paying stamp duty, reflecting regional variations in property prices.
Stamp duty payment rates vary widely by region
Research from Zoopla shows that nearly 80% of first-time buyers in London pay stamp duty, compared with fewer than 10% in the North of England. This disparity is largely due to the differing average property prices across regions.
Stamp duty is charged on property purchases above certain thresholds. First-time buyers are exempt up to £300,000, while standard residential purchases are exempt up to £125,000. The 2024 Autumn Budget increased the stamp duty surcharge on additional homes from 3% to 5%.
Stamp duty adds to upfront costs for many buyers
Richard Donnell, executive director at Zoopla, explains: “Where you’re buying determines what you pay in stamp duty if you’re a first-time buyer. In the North and Midlands, the £300,000 threshold means nine in ten first-time buyers avoid paying stamp duty.”
“In London and the South East, average first-time buyer home prices exceed £300,000, so most face a stamp duty bill on top of a sizable deposit. For home movers, stamp duty is almost always payable and can run into five figures in Southern England.”
He adds that six in ten property purchases are made by existing homeowners, and high stamp duty costs can deter some moves, especially given slower house price growth in the South in recent years.
Regional breakdown of first-time buyer stamp duty payments
In the North East, only 2.1% of first-time buyers pay stamp duty. Yorkshire and the Humber see 3.8%, while the North West and West Midlands have 6.2% and 9.3% respectively.
The South East and East of England are at a tipping point, with 51% and 52% of first-time buyers paying stamp duty. Average property prices where stamp duty is paid are £395,000 and £390,000 respectively, well above the national average.
In London, 79.7% of first-time buyers pay stamp duty, with an average property price of £475,000 and an average stamp duty bill of £8,750.
Stamp duty costs for home movers
Existing homeowners do not benefit from stamp duty relief, so over 80% pay the tax in every English region except the North East, where 63.5% pay.
Stamp duty bills in the North are modest, averaging £2,200 in Yorkshire and the North West, where the tax accounts for less than one penny per pound of the purchase price.
In the South East, more than 95% of home movers pay stamp duty, averaging £11,250. In London, where the median asking price for home movers is £600,000, the average bill reaches £20,000.
Practical support for TLA members on stamp duty impacts
The regional disparities in stamp duty payments highlight the importance for landlords and agents to understand how upfront costs may affect tenant demand and market activity. TLA membership offers access to practical compliance resources and guidance that can assist landlords in managing their portfolios effectively amid such financial considerations.
TLA’s new property management and compliance platform, ORBIT™, currently in BETA testing, is designed to help landlords and letting agents organise property information, manage key documents, and keep track of compliance activity. This can be particularly useful for monitoring changes in the market and responding to evolving financial pressures on tenants and buyers.
Members can explore how to better prepare their portfolios and access tailored support by reviewing TLA’s compliance resources and learning more about ORBIT™ BETA access.
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