Across the whole stamp duty holiday period, Keller Williams UK estimates that 576,000 transactions will save money due to the tax break by the time it ends in September of this year, 77% of which will pay no stamp duty on their purchase, with homebuyers in England saving around £2.8bn overall.
The government’s decision to extend the stamp duty holiday last week means an estimated 116,449 additional property transactions will benefit from this initial extension, based on recent Land Registry data, saving a total of £648.1m more in stamp duty and resulting in a further 98,500 homebuyers paying no stamp duty whatsoever, according to Keller Williams UK.
The company also predicts that the additional extension until 30 September, with a reduced stamp duty free threshold of £250,000, will see a further 117,779 transactions benefit, with as many as 56,287 more homebuyers paying no stamp duty and the market saving a total of £206.4m in the process.
CEO of Keller Williams UK, Ben Taylor, said: “You need only look at the market data already available to see the huge benefit that the stamp duty holiday has brought, both in terms of the total money saved and the large proportion of the market that has paid no stamp duty on their purchase at all.
“Based on current market trends, this impact is set to grow substantially with the double extension of the scheme, and even at a reduced threshold of £250,000, around half of those completing will still have no stamp duty bill to pay when they do.
“This extended incentive to transact will ensure buyer demand remains healthy and house price growth remains strong over the spring and summer months.”
Estimated number of transactions and SDLT savings based on 2020 price paid data (PPD category A = standard price paid entry), and averages between the start of the holiday (8th July 2020) to the latest available data (December 2020). The estimated average figures also relate to the number of days in each noted period, with relative SDLT thresholds applied in these cases.