Stamp Duty Changes: What They'll Mean for Buyers in Wembley
Changes to Stamp Duty come into force next year. Read on to learn how much they'll cost you and how to deal with them effectively.
December is often a quiet time in the property market, but not this year. Buyer demand, especially among first-time buyers (FTBs), is on the rise, driven by impending changes to Stamp Duty.
What's Changing?
Stamp Duty cuts announced in the 2022 Mini-Budget will end on 31 March 2025.
From 1 April 2025, Stamp Duty thresholds will revert to pre-September 2022 levels, and the FTB Relief will reduce significantly.
FTBs: The threshold for paying Stamp Duty will drop from £425,000 to £300,000, with relief applying only up to £500,000 (currently £625,000).
Home-movers: The threshold will drop from £250,000 to £125,000.
The rates will return to:
- 2% for the portion from £125,001–£250,000
- 5% for £250,001–£925,000
- 10% for £925,001–£1.5 million
- 12% for amounts over £1.5 million
The second-home surcharge has already increased from 3% to 5%.
Who's Affected?
FTBs will feel the pinch. The proportion of FTBs paying Stamp Duty is set to double to 40%.
For instance:
An FTB buying a £310,000 home will pay £500 after April (currently nothing).
An FTB purchasing a £425,000 property will see their bill rise from £0 to £6,250.
Home-movers will also face higher costs, with Stamp Duty on a £500,000 purchase increasing from £12,500 to £15,000.
Market Implications
Higher-priced regions will feel the biggest impact, with many buyers racing to complete deals before the deadline. Sellers, facing potential increases in their Stamp Duty bills, may be more flexible to secure a sale quickly.
FTBs and cash buyers could find themselves in strong negotiating positions as sellers aim to avoid complex property chains.
How to Act Fast
To beat the deadline, surround yourself with experienced professionals. Choose a skilled estate agent, get conveyancing recommendations, and stay organised with paperwork. Respond promptly to queries and clarify your goals to everyone involved in the transaction.
Want to get ahead of the changes? Contact us today to make your move happen before the Stamp Duty deadline.
If you found this information helpful, please share it with someone planning to move.
Sources:
· Rightmove
· Zoopla House Price Index, November 2024
