In December 2015, the government announced that it was changing the way Stamp Duty is calculated. In a move away from the block system that we saw in the past, where the whole value of a home was taxed a flat rate dependent on which band it fell into, the chancellor announced that Stamp Duty would be more akin to income tax.
Under the changed charges, homes are taxed in the same way as income, where we see only the portion of a value above each band is charged at higher rates. This move was hailed as being massively favourable to buyers, bringing down the cost of purchasing a home. Indeed, in the weeks after the announcement was made, there was a real surge in demand for homes across the nation.
But six months on, how has the change in regulations really performed? Are homeowners making the savings promised, and has the new system really had the desired effect?
According to a study into the matter carried out by myhomemove, the aftermath has been very positive, with the company saying this week that as many as 98 per cent of buyers purchasing a home for under £937,500 having seen the price of their Stamp Duty levy lower than it would have been before the changes came in.
Each homebuyer is now paying an average of £1,400 less than they would have done even just a few months ago. The effect of this for the housing market cannot be understated. After all, when the cost of purchasing comes down, far more people will be likely to put their money into buying a house.
"The stamp duty reforms have saved UK home buyers a significant amount of money since its introduction and provided an important boost to the property market, just as house transactions were starting to slow down in the run up to the general election," said Doug Crawford, myhomemove's chief executive officer.
Another positive that has been seen in the past six months has been an increase in the number of homes being sold around the thresholds for Stamp Duty. This means that people who would previously have struggled to sell their homes are now in a much better position to move up the ladder and buy bigger homes.