Stamp duty holiday: the £5K dividend revealed

With the stamp duty holiday over, here’s a look at how the scheme helped buyers across the UK, and what the savings could mean for you.

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The stamp duty holiday ended on 30 June across many parts of the UK. But did buyers and sellers actually benefit from the scheme? Yes, according to research by MoneySuperMarket. Let’s take a look at the findings. 


The stamp duty holiday

The UK government introduced the stamp duty holiday in July 2020. Under the scheme, buyers didn’t pay any stamp duty on the first £500,000 of the purchase price. So, if you bought a house for £495,000, you didn’t pay any stamp duty. Unsurprisingly, the scheme has helped to stimulate the housing market, with property prices seeing an almost 10% rise in the last 12 months. 

Although the scheme is at an end, reduced rates are still available in England until the end of September. Until 1 October 2021, you won’t pay stamp duty on the first £250,000 of the purchase price – great news for buyers hoping to complete in the next few months! 

Okay, so that’s how the holiday works, but how did it impact buyers and sellers around the UK? Here’s what the research suggests.

How much UK buyers saved during the stamp duty holiday

Recently, MoneySuperMarket polled buyers to find out how the stamp duty holiday affected them. Here’s a rundown of the highlights:

  • Homebuyers in Liverpool saved an average of £8,167 on the purchase price, which is the highest average saving in the UK. 
  • London came in second place, with buyers saving £7,410 on average. 
  • Edinburgh buyers saved around £7,100.
  • At the other end of the scale, Belfast buyers saved the least – £2,215 on average.
  • Buyers in Leicester didn’t do much better, saving on average just £2,400. 

Overall, though, the average UK buyer saved around £5,000 through the scheme. 

How the scheme helped UK sellers

What did the stamp duty holiday and increased demand mean for sellers? Well, according to the research, the average seller in the UK did pretty well through the scheme.  

  • London sellers made the most – an impressive £103,143 on average. 
  • Buyers in Norwich came in second place, with an average profit of £92,813. 
  • Again, though, Belfast sellers made the least profit, taking only £26,944 as an average. 

So, the average seller has made a profit of £80,312 over the past 12 months. 

What the stamp duty holiday means for you

What can we take from these findings? There are a couple of points to make. 

First, there’s still plenty of time to take advantage of the reduced rates in England. However, just make sure that you’re not tempted to buy a more expensive property than you can afford. It might be better to focus on putting down as large a deposit as you can – you’ll bring down your mortgage payments this way. 

And secondly, don’t rush your move. Spend time shopping around for a mortgage deal, especially if you’re a first-time buyer. Always get financial advice before applying for a mortgage if you’re unsure about anything. 



There’s no doubt that the stamp duty holiday benefited buyers and sellers, but it certainly created a ‘seller’s market’, with house prices rising across the UK.

While it’s unclear what direction the UK housing market will take in the coming months, we could see a drop in house prices now that there’s no scramble to meet the scheme deadline. This could mean a more favourable market for buyers later in the year – only time will tell, though. 

Wondering how much you’ll pay in stamp duty for your next property? Check out the UK government’s calculator for an estimate. 

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

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