If you listened to the Autumn Budget from Chancellor Rachel Reeves, you would have heard her announce the increase in stamp duty to 5% for second properties and investment properties, with immediate effect. She pledged that this “will support over 130,000 transactions from people buying their first home or moving home in the next five years.”
What was perhaps less clear, is that the temporary rates of relief introduced back in 2022, will come to an end on 31st March 2025. The thresholds where stamp duty will become payable are reducing.
This means from 1st April 2025 stamp duty will apply when purchasing properties that cost:
Please bear this in mind if you have a purchase application in progress. If you are looking to purchase a property before this date and have not yet submitted your mortgage application, please get in touch. Completion cannot be guaranteed before the deadline, as we are reliant on lenders, valuers and solicitors, as well as closures over Christmas, but we can try to push the application through as quickly as possible.
To help everyone, it is important you provide accurate information, and send all documentation/information promptly when asked. This could be from us as your mortgage adviser, from your lender or solicitor. If you are unsure of what’s needed, just ask.
The good news is that across the vast majority of local authorities, the average purchase price for a FTB is below £300,000. Of course, in other areas of the country, this just isn’t realistic.
If you are looking to purchase a property but don’t need to complete before the 31st of March 2025 deadline, please do still get in touch to get the ball rolling. Make sure you take the higher stamp duty into account when looking at properties and calculating your budget, so as not to be disappointed.
***Refer to https://www.gov.uk/stamp-duty-land-tax for up-to-date information. Your solicitor will also be able to provide you with the exact amount of SDLT you are due to pay.***
