Buying a House - Stamp Duty
The cost of moving house has risen sharply over in the past decade: from about £4,100 to just under £10,000. This figure takes into account removal costs (£450), lawyers’ fees (£1,000), estate agents’ fees (£3,000) and, above all, Stamp Duty (£5400).
While removal costs and legal fees have risen in line with or below inflation and estate agent commission as a percentage of the house price is largely unchanged, Stamp Duty has risen over 520% in 10 years.
This potentially crushing reality imposed by government discourages people from progressing up the property ladder, producing bottlenecks in the natural flow from conventional first time buyer homes through to the largest properties.
You pay Stamp Duty Land Tax (to give it its full title) on property such as houses, flats, other buildings and land. If the purchase price is £125,000 or less you do not pay any Stamp Duty at all. If it is over £125,000, you pay between 1% and 4% of the whole purchase price, on a sliding scale.
| Rate | Land in disadvantaged areas - Residential | Land in disadvantaged areas - Non-residential | All other land in the UK - Residential | All other land in the UK - Non-residential |
| Zero | £0 - £150,000 | £0 - £150,000 | £0 - £125,000 | £0 - £150,000 |
| 1% |
Over £150,000 |
Over £150,000 |
Over £125,000 |
Over £150,000 |
| 3% |
Over £250,000 |
Over £250,000 |
Over £250,000 |
Over £250,000 |
| 4% | Over £500,000 | Over £500,000 | Over £500,000 | Over £500,000 |
At mortgagesplease, we can advise you on the process of house purchase, with all its up-front and hidden costs, including Stamp Duty, as part of arranging the mortgage that best fits your particular circumstances and goals.
