NOT a First Time Buyer? This one's for you!
Following the Stamp Duty holiday, which ended on 30th June 2021, the threshold for the NIL rate was increased from £125,000.00 to £250,000.00. This change was originally to be for just 3 months but was extended from 1st October 2021. This will now come to an end on 31st March 2025. Therefore, from the 1st April 2025 the threshold for the NIL rate Stamp Duty (SDLT) will revert to £125,000.00.
As anticipated this imminent change has prompted many homeowners and first time buyers to start looking for their new or next home and which is great news as a record number of properties were listed for sale on Boxing Day 2024 according to the latest data from Rightmove, the Uks biggest property website.
Steve Pimblett, Rightmove’s Chief Data Officer says: “We’ve seen a record-breaking Boxing Day, not only for people turning to the Rightmove platform once the Christmas Day festivities are over, but also for home-movers taking action and getting ahead of a 2025 move. While it’s very early days, these first indicators are positive signs for a busy start to the year for agents.”
Rachael Mitchell, a Licensed Conveyancer and Head of Residential Conveyancing at Lawson West commented:
“The imminent change will tempt many homeowners to move now to take advantage of the reduced stamp duty before the nil rate threshold reduces back to £125,000.00. However, all buyers should ensure they have sufficient funds should their property transaction complete from 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.
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.
If you believe you have a situation where you require legal advice, please contact us on telephone 0116 212 1000 or 01858 445 480, alternatively fill in the free Contact Us form and we will get in touch as soon as possible.
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