Older people in '99 per cent of local authorities' face £2,500 tax increase

Homebuyers in 99 per cent of local authorities in England will face a Stamp Duty Land Tax (SDLT) increase starting in April, according to research by Regency Living. Homebuyers in 67 per cent of these authorities will see the maximum increase of £2,500, an over-50s mortgage expert has warned.

Currently, homebuyers pay no SDLT on properties up to £250,000, with rates of five per cent on the portion of house prices between £250,001 and £925,000, 10% between £925,001 and £1.5m, and 12% on anything over £1.5m.

Sales & Marketing Director at over-50s specialist Regency Living, Tim Simmons commented: “Homebuyers across the nation will be understandably disappointed to see that no extension to current stamp duty relief thresholds was granted in this week’s Autumn Statement.

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“The good news is that, for first-time buyers, purchasing a home at £300,000 or less will still see them pay no stamp duty, however, it’s existing homebuyers who are likely to be hit with the largest increase in costs when it comes to purchasing.

“For many, this increase will be £2,500 and will see the average existing homebuyer across England paying £5,500 in stamp duty. However, this climbs north of £10,000 in 55 local authorities and as high as £58,000 in the most expensive areas of the market."

Mr Simmons said: “Whilst having a foot on the ladder does put them at an advantage to some extent, stamp duty remains a substantial financial barrier that delays homebuyers at all rungs of the ladder. It’s hardly surprising that one of the biggest draws of the residential park home sector is the fact that park home buyers don’t pay any stamp duty on their purchase.

“So not only do the majority benefit from releasing equity in their bricks and mortar home, but they also face lower costs when purchasing, putting them in a great position financially.”