Buyers will have to pay stamp duty on 93% of properties for sale in England if the Chancellor does not increase the current thresholds in tomorrow’s Budget, research from Leeds Building Society shows.
Rachel Reeves is expected to allow the more generous thresholds for buyers to expire at the end of March next year, meaning a much greater number of purchases will be covered by the tax.
The tax-free threshold for all homebuyers will return to £125,000 from £250,000, and for first-time buyers to £300,000 from £425,000.
In Yorkshire, buyers currently pay stamp duty on 49% of homes on the market.
However, if the thresholds return to previous levels, this will increase to 86% of homes.
Leeds estimates that the average first-time buyer renting privately in London would need to save an extra 12 months to afford their own home when the current threshold expires, on top of the 25.8 years they would likely need to cover the initial average deposit to save.
The lender says that home prices paid by first-time buyers in 2022 were sixteen times higher than in 1982, while gross income was only seven times higher.
Andrew Greenwood, deputy director of Leeds Building Society, said: “We all know the value having a place we can call home can add to our lives.
“As a mutual fund, we were founded to help people own their home and save for their future, creating a sense of belonging in communities across the country.
“We welcome the Labor Government’s commitment to social and affordable housing and the renewed interest in housing, but our country must develop a joint long-term plan to improve housing market stability if we are to solve the problem.
“This must be a plan that focuses on delivering more homes, supporting first-time buyers to save for their deposit and expanding affordable routes to homeownership.”