The stamp duty cut announced by the government in last week’s mini-budget could save homebuyers across England over £1bn per year, latest research by London lettings and estate agent, Benham and Reeves has shown.

Benham and Reeves analysed sold price data for the 574,091 homes sold over the last year, calculating the level of stamp duty that was owed, versus the amount that would have been owed under the new guidelines. The 574,091 homebuyers to have completed on a property purchase across England in the last year paid stamp duty to the tune of £5.839bn. However, had they benefited from the stamp duty cut announced last week, the total stamp duty payable would have been £4.810bn.

Regionally, buyers in the South East could stand to save the most, with the latest cuts reducing the stamp duty owed by £227.6m a year.

Director of Benham and Reeves, Marc von Grundherr, commented: “Any saving will be warmly welcomed for those looking to climb the property ladder, particularly in the current economic climate and, collectively, the nation’s homebuyers stand to save a significant sum as a result of the latest stamp duty changes.

“But today’s cut is fairly insignificant in the grand scheme of things and will do little to help homebuyers overcome the huge initial hurdle of saving that all important mortgage deposit. In fact, it’s fair to say that it will only add to the problem by fuelling demand and pushing house prices higher, while the government maintains a head in the sand approach to housing delivery.”

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