U.K. Buyer Tax Break Benefits Greater Percentage than Expected

A temporary tax break for those buying properties sold in a certain price range in the United Kingdom has benefited a greater percentage of borrowers than expected but its effects vary by region, according to the Council of Mortgage Lenders, London. The trade group said, "In September last year, when the government first raised the nil rate threshold for stamp duty, ... the CML estimated that this would mean the proportion of homebuyers who would not have to pay would rise from a quarter to a half. In fact, at its peak in the first quarter of this year, the concession benefited even more than this, with 57% of all those buying with a mortgage not having to pay [the tax]." However, that percentage decreased over the course of the year. "Modest house price increases and a shift in the mix of houses bought (toward higher value properties) brought this down to 51% in the third quarter." The CML also noted, "The flat nature of the concession - the same in all regions of the country - means that there is a wide geographic variation in the effect. Those areas with generally lower home prices see the greatest benefit."