And 14% of people buying their second or third homes do not consider stamp duty either, the study from the TSB also found.
Despite the high numbers, the bank says it is encouraging that 41% of first time buyers and 45% of established home owners are well prepared and have calculated the exact amount to set aside for stamp duty.
The research also shows that people’s level of consideration of stamp duty varies quite significantly across the country. Some 59% of those living in the East of England, 49% in the South West and 48% in the South East are stamp duty savviest, setting aside a specific amount to cover stamp duty.
However, in contrast, some 26% of those living in the North West and 25% in Wales are not considering the cost of stamp duty before making an offer on their potential home.
The research also found the average stamp duty outlay exceeds £5,000, the equivalent of nearly a tenth of the average deposit. For those looking to buy their first home, the average stamp duty is equivalent to an even larger proportion at 15% of the average deposit.
In fact, it can be such a large cost that 9% of home buyers have capped their bid for a property in order to fall into a lower stamp duty bracket. The most likely to have done so are those living in London and the South East, at 12% and 13% respectively, who also face the highest average house prices in the UK.
Some 31% of current home owners who took part in the survey said they did not pay stamp duty. This is in stark contrast to those currently looking to buy their first property as the majority, 86%, expect to pay stamp duty.
The research also shows that 36% of first time buyers and 41% of established home owners are most likely to use their personal savings and investments to cover the cost of stamp duty.
Some 15% of first time buyers consider cash gifts from family and friends and 10% turn to credit cards as a means of paying.
‘With UK house prices rising, it should come as no surprise that the cost of stamp duty is on the up too. Yet, a worrying number of home buyers are failing to factor this significant outlay into the overall cost of buying a home,’ said Ian Ramsden, TSB’s director of mortgages.
‘With the expenditure on stamp duty equivalent to a tenth of the average deposit, it is important for potential homebuyers to factor it in to their purchase decision at an early stage. Before starting their house hunt, people should talk to a qualified mortgage adviser to see what options are available to them. Buyers should kick start their search safe in the knowledge that they can afford the full costs of buying their dream home,’ he added.
TSB is currently offering to pay stamp duty for new mortgage customers whose home cost between £125,001 and £250,000, potentially saving them up to £2,500.
For a home worth less than £125,001 or more than £250,000, new TSB mortgage customers can receive £500 cashback, which will go some way towards the costs of buying a property such as surveying, stamp duty or removal fees.
In addition, customers can save even more money upfront with TSB’s mortgages, as many come without application or product fees.
