Evaluating the impact of the 2017 Stamp Duty Land Tax First Time Buyers’ Relief
This report estimates the transaction and price impacts of the 2017 First Time Buyers’ Relief from November 2017 to November 2018.
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This report estimates the impact of the 2017 First Time Buyers’ (FTB) Relief from Stamp Duty Land Tax (SDLT) on the number of FTB transactions and the average prices paid by FTBs for residential property transactions from November 2017 to November 2018. The approach compares FTBs with home-movers from the same geographical regions, as home-movers were unaffected by the policy.
For the period of the analysis, FTB Relief led to an increase in FTB transactions of 11% for property transactions between £125,000 and £300,000, and 18% for properties transactions between £300,000 and £500,000. The policy also led to a slight increase in the prices paid by FTBs of 1% for property transactions between £125,000 and £300,000. The analysis did not find statistically significant evidence of a price impact for property transactions between £300,000 and £500,000.