The clock's ticking! Your guide to beating Stamp Duty changes

If you’re considering buying a new home, now is the time to act. With the government announcing that the current Stamp Duty threshold will increase in April 2025, buying now could save you money and secure your future home. 

Here’s everything you need to know about the changes and how you can benefit by acting now.  

What is Stamp Duty?  

Stamp Duty Land Tax (SDLT) is a tax paid by homebuyers in England when purchasing a property. The cost of Stamp Duty depends on the price of the property, whether you’re a first-time buyer, moving up the ladder or buying an additional home. Stamp Duty must be paid in a lump sum upon completion, both if you’re buying with a mortgage or in cash. 

Stamp Duty applies to all property types, including a flat, house or bungalow – and is required for both freehold and leasehold purchases.  

What’s changing and why?

In September 2022, the government temporarily reduced Stamp Duty thresholds to make buying a property more affordable and boost the housing market. These reductions are due to end on 31st March 2025, with thresholds reverting to their previous, higher levels.  

This means that many buyers who would currently pay little or no Stamp Duty will see their costs increase from April 2025. Purchasing a home now ensures you avoid these increases and allows you to take advance of today’s favourable rates.  

How could the changes impact you?

Here’s a breakdown of how the Stamp Duty changes could affect different types of buyers: 

First-time buyers:  

• Currently, you pay no Stamp Duty on homes up to £425,000, thanks to first-time buyer relief
• From April 2025, this threshold drops to £300,000
• For example, buying a home worth £370,759 now incurs £0 Stamp Duty, but after the changes, it would cost you £3,538

Home movers:  

• At present, no Stamp Duty is paid on homes up to £250,000
• After the changes, you’ll pay nothing on homes up to £125,000 and 2% from £125,000 up to £250,000.
• Buying a £250,000 home now saves you £2,500 compared to waiting until after April 2025

Property investors and second home buyers:

• Second homes and investment properties are subject to an additional 5% surcharge on top of regular rates
• With the Stamp Duty thresholds changing, the total tax payable will increase, potentially impacting profitability

Why you should act now  

The upcoming Stamp Duty changes means that buying a new home before 31st March 2025 could save you thousands of pounds. Waiting could also mean not only paying more in taxes but also facing increased competition as buyers rush to beat the deadline.  

How Jelson Homes can help you beat the deadline

Jelson Homes has a fantastic selection of new homes for sale in the East Midlands which are thoughtfully designed, located in sought-after areas, and are ready for you to move in to before the deadline.  

Get in touch today to explore our range of stock properties and make your move before 31st March 2025.