24/02/2025

From 1 April, stamp duty land tax (SDLT) changes will mean thresholds will return to the pre-pandemic levels. Rather than being a ‘price hike’ as such, it is more like normal service being resumed.

Despite this, we are seeing many people desperately scrabbling around trying to complete property transactions prior to the deadline.

The reality is that, even if you are not able to complete before 1 April, it doesn’t mean you’ve missed the opportunity to move. There are many other factors that come into play when considering the cost of moving house that could even make it beneficial to wait and not rush.

Here are some of the other factors worth considering:

Mortgage lending review

The government started 2025 by announcing some potential changes they might be making to benefit homebuyers. A review of mortgage lending restrictions could make borrowing easier, allowing more people to get on the property ladder or move home. This should support the market and encourage growth despite changes like the SDLT change.

Interest rates

Mortgage rates have been steadily declining over the past few years, with the current trend seeing a 0.1 percentage drop every couple of months. A drop of 0.2 percent could save the average home buyer as much as £6,000 across the entire repayment period, representing a major saving in the face of an increased tax bill.

House prices

Reports are suggesting that house prices in some parts of the country are rising because of the pressures of the stamp duty deadline, meaning waiting until after the deadline when the market is a little cooler could pay off for those willing to wait.

Competition

Additionally, competition is much hotter now as people race against time to complete their property purchases. However, waiting until after the deadline could allow for less competition when buying for home movers.

The value of your new home

The maximum SDLT increase is £2,500 so reducing your initial offer by this much would allow you to instantly recover this money and would also reduce your overall stamp duty bill, resulting in even greater savings.

The value of your current home

When selling your current home, you could also add £2,500 to the minimum price you’d be willing to accept based on the value of your home. By only accepting offers £2,500 more than your original minimum price, the increased stamp duty you’ll pay on your new home could be covered

 

The SDLT changes mean that from 1 April 2025 no stamp duty will be payable on the first £125,000 of the value of any house purchased, but if the property you are buying costs more than this, 2% will be payable on the portion of the cost from £125,001 to £925,000.

To stimulate the housing market during the Covid pandemic the rules were temporarily changed so that the first £250,000 of the value of a property was free from SDLT.

Need more advice about SDLT changes or conveyancing? 

For advice on SDLT or any conveyancing matter, please contact our experienced conveyancing and property team by emailing enquiry@beswicks.com or phoning our Stoke-on-Trent solicitors on 01782 205000 or our Altrincham solicitors on 0161 929 8494.