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Stamp Duty receipts down by 12 in January and February…

March 23rd 2015
By: Melanie Hollidge

Last year there were some major changes to the way in which the Treasury charges stamp duty, we covered this in our article Stamp Duty – The facts, if you are a first time buyer, purchasing a house under £125,000, then you will not need to pay any stamp duty, with 2% on houses with a value of up to £250,000 and 5% on houses up to £925,000.
 
According to the Financial Times, since the new reforms brought into effect on 4th December 2014, the Treasury have reported that Stamp Duty receipts in January and February of this year are 12% lower than they were in the same period last year.
 
The OBR, Office for Budget and Responsibility forecast a drop in Stamp Duty revenue for two reasons, firstly because of the reduction in Stamp Duty at the lower end of the purchase price sale and because it had anticipated less transactions in 2015. These figures conflict with Halifax who predicted an increase of 20%, giving £8 billion worth of revenue compared to 2013-2014, where they raised £6.45 billion.
 
The area in which buyers have been most affected by rises in Stamp Duty are in the capital, because of high prices.
 
The Halifax stated that about 75% of property purchasers are liable to pay stamp duty in December and January, however in London those figures rose to over 95% compared to 53% of purchases in the North East of England.
 
If you would like to find out more information about Stamp Duty changes then why not pop  into your local branch of Goodfellows for a chat and a coffee or call our team on 0845 3727070.
 
Source: Estate Agency Today