Why Now Is the Time to Buy: Upcoming Stamp Duty Changes

Why Now Is the Time to Buy: Upcoming Stamp Duty Changes Featured Image

If you’re considering purchasing a property, acting now could save you thousands in Stamp Duty Land Tax – especially if you’re a first-time buyer. Starting from March 31, 2025, changes in Stamp Duty rates will increase costs for many homebuyers. There was some speculation about a potential decision to push this date back in the latest government budget, but no new measures were introduced.

What is Stamp Duty?

Stamp Duty Land Tax is a tax payable to HM Revenue and Customs when buying a property or land in England and Northern Ireland. It applies to properties above a certain price threshold. In September 2022, the government announced a temporary increase to the threshold, making more properties exempt. This temporary increase is due to end on 31 March 2025.

Current Stamp Duty Rates

Currently, the Stamp Duty rates for property buyers are as follows:

  • 0% on properties up to £250,000
  • 5% on the portion between £250,000 and £925,000
  • 10% on the portion between £925,000 and £1.5 million
  • 12% on any amount above £1.5 million
  • First-time buyers pay 0% on any property priced above £425,000
  • The maximum purchase price for which first-time buyers can claim Stamp Duty exemption is £625,000

Changes Effective After March 31, 2025

From March 31, 2025, the following changes will apply to the Stamp Duty structure:

  • The 0% threshold will lower from £250,000 to £125,000.
  • A 2% rate will apply to the portion between £125,000 and £250,000, a bracket previously exempt from tax.
  • For first-time buyers, the tax-free threshold will reduce to £300,000.
  • The exemption for first-time buyers will apply to properties valued up to £500,000 rather than the current £625,000.

Why Act Now?

With Christmas around the corner, it might be tempting to delay your home search. However, acting now can help you secure the current lower rates and avoid higher costs post-March. A typical UK property transaction takes about 12 to 16 weeks, and possibly longer if complications arise. Waiting could mean incurring higher Stamp Duty.

If you’re a first-time buyer aiming to move quickly, purchasing a new-build home from Erris Homes could help. With no upward chain, the buying process can be a lot faster. We’re building a variety of 3, 4, and 5-bedroom homes priced from £345,000 at our Calder Mews development in Greetland, with some ready to move into early next year—perfect timing to complete before the Stamp Duty changes.

To find out more, contact Erris Homes on 0113 531 0000 or info@errishomes.com

To find out the latest availability at Calder Mews and arrange an appointment to view, contact Bramleys on 01422 374811 or elland@bramleys.com