9% of homes for sale in England would attract zero stamp duty – Rightmove

Rightmove said 9% of properties for sale in England on its website are being advertised at £125,000 or less.

The ‘nil rate’ stamp duty band will revert to its usual level from October 1 (Yui Mok/PA) (PA Archive)

Less than one in 10 (9%) homes for sale in England on Rightmove would be exempt from stamp duty for home movers when the threshold returns to normal levels from Friday.

Rightmove said 9% of properties for sale in England on its website are being advertised at £125,000 or less – and would therefore be exempt from stamp duty for home movers if being purchased as a main residence.

The “nil rate” stamp duty band will revert to its usual level from October 1, when properties bought for up to £125,000 will attract a zero rate under the tax.

The zero rate threshold was temporarily raised to £500,000 in July last year and then lowered to £250,000 in July this year, to help kick-start the housing market after it was affected by the coronavirus pandemic.

Stamp duty rules vary depending on the type of buyer.

First-time buyers can potentially pay no stamp duty up to £300,000.

And people buying a second home usually have to pay 3% on top of stamp duty rates.

Rightmove said more than half (52%) of properties in England are priced at £300,000 or less and could therefore be exempt from stamp duty for first-time buyers.

Since the stamp duty holiday was announced in July 2020, average asking prices have increased by just under £10,000 across Britain for first-time buyers, it said.

It added that while there are now signs that asking prices are stabilising, competition among buyers for homes is double that of pre-pandemic levels.

Here are average asking prices in September 2021 and the increase or decrease in cash and percentage terms compared with July 2020, according to Rightmove:

– South West £353,213, £32,852, 10.3%

– East of England, £395,983, £33,008, 9.1%

– North West, £227,441, £19,111, 9.2%

– Yorkshire and the Humber, £219,116, £15,066, 7.4%

– East Midlands, £264,554, £26,031, 10.9%

– West Midlands, £260,706, £20,761, 8.7%

– South East £453,551, £34,756, 8.3%

– North East, £165,628, £8,548, 5.4%

– London, £638,285, minus £3,569, minus 0.6%

– First-time buyers across Britain, £209,056, £9,716, 4.9%