New Halifax research shows that up to 112,000 homebuyers in England and Wales - 31% of all buyers - have been exempt from paying the tax as a result over the ten months between September 2008 and June 2009, according to the latest data.
More than a quarter (27%) of first-time buyers (FTB) are estimated to have not paid stamp duty during September 2008 - August 2009 because of the raising of the nil rate threshold. Only 17% of FTB purchases during this period were above the temporarily higher threshold of £175,000. The proportion of FTBs in the UK that would have paid stamp duty if the threshold had been £125,000 would have been 43%.
The numbers benefiting from the increase in the threshold have been significantly lower than would have been the case in other years due to the very low level of house sales over the past year. There were 366,000 sales in England and Wales between September 2008 and June 2009; 50% lower than in the same period a year earlier.
Martin Ellis, housing economist at Halifax, commented: "The temporary raising of the lowest stamp duty tax threshold has removed a significant number of homebuyers from the tax net. This has been a boost to many people in a very difficult economic climate. The impact has added to the far more significant effect of the reduction in house prices in helping to reduce the costs of buying a home over the past year. Lower prices have also brought some properties below £175,000, therefore making the purchasers of such properties exempt from stamp duty whereas they would not have been a year ago."
