Are you ready for the Upcoming Changes to Stamp Duty?
Changes to Stamp Duty in 2025: Why Now Is the Perfect Time to Sell Your Property
With 2025 on the horizon, significant changes to stamp duty are set to impact the property market. These adjustments could affect both buyers and sellers, making now an opportune moment to consider selling your property. Here’s what you need to know about the changes and why taking action sooner rather than later could be to your advantage.
What Is Stamp Duty Land Tax?
SDLT is a tax paid when purchasing property in England and Northern Ireland. The amount charged depends on the property’s purchase price.
What’s Changing?
From 1 April 2025, Stamp Duty Land Tax (SDLT) rates are set to change, with the temporary increases to thresholds—introduced in September 2022—coming to an end. Zero rate thresholds for main residences will drop from £250,000 to £125,000.
First-Time Buyers Face Challenges as Stamp Duty Changes Loom
Historically, first-time buyers (FTBs) have benefitted from discounts or exemptions to assist in purchasing their first home. However, changes to stamp duty announced in the government's Autumn Budget could create new hurdles for those hoping to get onto the property ladder.
Currently, First Time Buyers benefit from a nil-rate threshold for properties valued up to £425,000. For homes priced between £425,001 and £625,000, FTBs pay a reduced SDLT rate of 5%. These provisions are in place until 31 March 2025.
Key Changes for First-Time Buyers
After 31 March 2025:
The nil-rate threshold for FTBs will revert to its previous level of £300,000.
The maximum property value eligible for reduced SDLT rates will decrease to £500,000.
To take advantage of the current rates, buyers must exchange contracts, complete the purchase, and move into their new home by 31 March 2025. While this deadline may seem far off, the property market often moves quickly, and planning ahead is essential.
What Does This Mean for You?
For those looking to move soon, the current window offers an opportunity to benefit from higher thresholds and potentially save on stamp duty. However, buyers planning for the longer term will need to factor in the revised thresholds and how these changes may impact their budgets.
If you’re considering a property purchase, it’s vital to start planning now to secure the best deal before the new SDLT rates take effect. Reach out to our team for expert guidance and support in navigating these changes.
Why Is Now a Great Time to Sell?
Current Stamp Duty Rates Favour Buyers: With no changes yet implemented, buyers are still benefiting from the current, more favourable rates. This creates a larger audience of motivated buyers who may act now to avoid higher costs in 2025.
High Demand and Rising Prices: The property market remains active, with demand for homes still outpacing supply in many areas. Selling now allows you to capitalise on strong market conditions.
How Can We Help?
If you’re considering selling, our expert team is here to guide you through the process. From accurate property valuations to strategic marketing, we ensure your home stands out in today’s competitive market.
Don’t wait for the 2025 changes to impact your plans. Contact us today to arrange a free property valuation and take the first step towards a successful sale.
Selling your property is a big decision, but with the right timing and support, it can also be a rewarding one. Make the most of the current market conditions and avoid the challenges the 2025 stamp duty changes may bring. Act now, and let us help you achieve the best possible outcome for your sale.