First Time Buyers: Will you soon have to pay SDLT?
First Time Buyer Relief was introduced on 22nd November 2017 providing relief for first time buyers up to a threshold of £300,000.00 on all properties in England and Wales. This was later increased in September 2022 to £425,000.00.
From 1st April 2025 the threshold is to be reduced back to the original £300,000.00 but only for properties with a maximum value of £500,000.00.
Amanda Bryden, Head of Mortgages at Halifax said:
“The upcoming stamp duty changes will give first-time buyers even greater motivation to get on the housing ladder and bring their plans forward.”
Rachael Mitchell, a Licensed Conveyancer and Head of Residential Conveyancing at Lawson West commented:
“The imminent change will tempt many first-time buyers to purchase now to take advantage of the reduced stamp duty especially if the property they wish to purchase is in excess of £300,000.00. However, they must also ensure they have sufficient funds to pay the additional stamp duty should completion not take place before 1st April 2025.”
Whenever there is a significant change to Stamp Duty more people decide to take advantage of it and therefore it is anticipated that more property transactions will take place over the next 3 months. Historically, any such changes result in transactions taking longer than usual with many factors causing delays including (but not limited to) mortgage offers, valuations and surveys, local authorities and other searches, the current high demand and pressures experienced by all Conveyancers and the backlog the Land Registry has been dealing with since the pandemic.
At Lawson West our Team of dedicated and expert Conveyancers understand that for most people your home is the biggest purchase you will ever make and themselves on the level of service provided to our clients. Unlike many conveyancing firms, we carefully limit the number of clients we act for and ensure that all clients have a dedicated and experienced lawyer to represent them throughout the process.
Some firms are offering a faster service, but no Conveyancers can guarantee how long the transaction will take and all buyers should ensure they have sufficient funds should their property transaction complete from 1st April 2025.
Contact Rachael Mitchell here
Notes:
Stamp Duty Changes
*The temporary increase in the nil rate stamp duty thresholds (in England & Northern Ireland) will expire on 31 March 2025 and revert to their previous levels. For first time buyers purchasing a property of under £500,000, the nil rate band threshold will fall to £300,000 from £425,000 at present, while for other residential buyers, the nil rate band threshold will decline to £125,000, from £250,000. This means more purchasers will have to pay stamp duty.
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