A new study released by bank TSB shows that nearly a quarter (22%) of first-time buyers in the country do not take into account the impact of stamp duty before making an offer on a home. The cost of stamp duty is also something that one in seven people buying their second or third home fail to consider, according to the findings.
Nevertheless, there are still 41% of first-time buyers and 45% of established homeowners who do calculate the tax, sensibly setting aside a certain amount to cover stamp duty expenses, TSB revealed.
Apparently, homeowners in the east of England are the most likely to consider stamp duty when planning a purchase (50%), followed by those in the South West (49%) and the South East (48%). In the North West and Wales, approximately one in four buyers fail to calculate the tax before making an offer.
At present, stamp duty averages more than £5,000, which roughly corresponds to some 15% of an average deposit a first-time buyer makes to back a residential purchase. The bill is considered too hefty for 9% of buyers, who have been forced to cap their bid for a property in order to push a home into a lower stamp duty bracket. Buyers most likely to do so live in London (12%) and the South East (13%), which is probably due to the fact that people in these areas pay the highest house prices in the country.
Have you taken stamp duty into account?