New research by Leeds Building Society has found that 93% of properties for sale in England will have to pay stamp duty if the current thresholds are not extended in tomorrow’s Budget.
It is widely expected that Chancellor Rachel Reeves will allow the more generous buyer thresholds to run their course until next year, which will mean a sharp increase in the number of properties that will have to pay the tax.
The current £250,000 tax-free threshold is expected to return to £125,000 and the first-time buyers bracket from £425,000 to £300,000.
Buyers in Yorkshire currently pay stamp duty on 49% of houses on the market – a figure that would increase to 86% if the thresholds were to revert back to their previous levels.
Based on their findings, Leeds Building Society estimates that the average first-time buyer renting privately in London would need to save for an extra 12 months to build up the deposit required to purchase a home. This would be in addition to the 25.8 years it would likely take to save the initial average deposit.
The research also found that houses prices paid by first-time buyer is 16 times higher in 2022 than in 1982. Gross earnings across the same period are only seven times higher.
Leeds Building Society deputy chief executive Andrew Greenwood says: “We all know the value that having a place to call home can add to our lives.
“As a mutual, we were set up to help people own their own home and save for their future, creating a sense of belonging in communities across the country.
“We welcome the Labour government’s commitment to social and affordable housing and renewed interest in house building, but our country needs to develop a long-term and joined-up plan to improve stability in the housing market if we are to solve the problem.
“This needs to be a plan focused on delivering more homes, supporting first-time buyers to save for their deposit and extending affordable routes into home ownership.”