Transactions expected to surge in early 2025

In the 2022 mini-budget Stamp Duty thresholds were increased, so in the last two years homebuyers have paid a reduced amount of tax. However, in the Autumn Budget 2024, Chancellor Rachel Reeves confirmed that the thresholds will revert to their previous levels on 1 April 2025.

Increased thresholds

Currently, first-time buyers (FTBs) do not have to pay Stamp Duty on properties costing up to £425,000 but this threshold will return to £300,000 from Q2 2025. For all other homebuyers, the threshold will fall from £250,000 to £125,000.

Market impact

The increased thresholds are likely to cause a surge in purchases in Q1 2025 as buyers rush to complete, followed by a slowdown in transactions in subsequent months. Meanwhile, Nationwide expects that the tax changes will affect one in five FTBs. Robert Gardner, the bank’s Chief Economist, explained that “the impact will vary significantly across the country, largely as a result of the difference in house prices across the UK”.

We can help you understand what the latest tax changes mean for you and your property plans – contact us for advice.

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