An analysis of Land Registry data by eXp UK has revealed that while just 17.4% of homes sold across England and Wales between January and July achieved a price of at least £500,000, more than half of the homes sold in London (53.3%) were over the threshold.
The analysis of Land Registry Price Paid data covering 281,108 completed transactions found a total of 48,942 homes sold for £500,000 or more, which eXp UK pointed out would ease the tax burden for ‘the vast majority of buyers’. In the North East, as few as 3% of homebuyers would be liable for the tax, with 4.1% in Wales and 5.4% in Yorkshire and the Humber.
But with more than half of London homes over the threshold, over a quarter in the South East (27.3%) and a fifth in the East of England (20.3%), the company said its analysis highlights how uneven the impact could be on the housing market and property professionals.
Adam Day, head of eXp UK and Europe, explained:
“Policy changes such as the proposed move from Stamp Duty to a homeowner levy would create a very different market landscape for agents across England and Wales.
“While the majority of buyers would clearly benefit from reduced upfront costs, agents in regions such as London and the South East will need to adapt quickly given the higher proportion of homes that could fall under the new system.”
The proposed changes ‘would represent a fundamental shift in the way transactions are taxed’, eXp added, easing affordability pressures for the majority of buyers but creating new considerations for those looking to climb the ladder at £500,000 or more.
