Posted: Wednesday, November 20, 2024

2025 outlook: save on Stamp Duty before it's too late

During the mini-budget in September 2022, the stamp duty thresholds on residential property were raised to their current levels, with the nil band increased from £125,000 to £250,000 for homemovers selling their home to buy another one, and first-time buyers paying no stamp duty on properties costing up to £425,000.  

While this was initially brought in as a permanent change, Chancellor Jeremy Hunt would later announce that the change would only remain in place until April 2025. Although there was the hope that the newly appointed Labour Chanceller, Rachel Reeves, would keep the threshold as a permanent change, this has not been the case, and in the recent Budget she announced that thresholds will revert back to their pre-2022 levels as planned. 

This means that there are only a few months left at the current rates, and completing a property purchase after 31 March 2025, will mean paying thousands more on stamp duty.  

As it stands now, buyers who are a UK resident purchasing a residential property as their primary residence, will pay the following: 

Up to £250,000 - Zero 

The portion from £250,001 to £925,000 - 5% 

The portion from £925,001 to £1.5 million - 10% 

The portion above £1.5 million - 12% 

So, if you are purchasing a property for £300,000, you would pay no stamp duty on the first £250,000 and 5% on the remaining £50,000, which would equate to £2,500.  

For any additional property, a further 5% surcharge would apply.  

From 1 April 2025, the following rates will apply: 

Up to £125,000 - Zero 

The portion from £125,001 to £250,000 - 2% 

The portion from £250,001 to £925,000 - 5% 

The portion from £925,001 to £1.5 million - 10% 

The portion above £1.5 million - 12% 

This mean that for the same £300,000 property, the buyer would now be paying no stamp duty on the first £125,000, 2% on the next £125,000 and 5% on the remain £50,000, which equates to £5,000. 

First-time buyers 

Currently, first-time buyers pay no stamp duty up to £425,000, and 5% on values between £425,001 and £625,000. Homes above £625,000 do not qualify for the first-time buyer relief. From April next this, first-time buyers will pay no stamp duty on the first £300,000 and 5% on the portion between £300,001 and £500,000, with no first-time buyer relief on purchase above £500,000.  

Current first-time buyer stamp duty rates: 

Up to £425,000 – Zero 

The portion from £425,001 to £625,000 – 5% 

First-time buyer stamp rates from 1 April 2025: 

Up to £300,000 – Zero 

The portion from £300,001 to £500,000 – 5% 

 

According to Iain McKenzie, CEO of The Guild, as we head towards the deadline of threshold change, there will likely be an increase in market activity leading up to April 2025. He adds that those wishing to make the most of the current rates and avoid additional costs, should start planning their transactions now to get over the line before the cut off.  

Impact on market activity leading to April 2025 

Historically, Stamp Duty changes have triggered a surge in transactions as deadlines approach. As we edge closer to April 2025, there may be heightened demand from homebuyers hoping to benefit from the current thresholds, with many aiming to finalise purchases before the less favourable rates take effect. 

McKenzie reflects, “Previous stamp duty holidays have shown us that market activity often spikes as we approach the end of relief periods. Sellers who are thinking of putting their homes on the market could benefit from buyers looking to accelerate their purchasing timelines and the expected rise in activity as we move closer to the change in the thresholds.” 

In conclusion, the upcoming changes to stamp duty thresholds mark a critical moment for the property market, creating a narrow window of opportunity for buyers and sellers to capitalise on the current rates. For those considering a move or a purchase, early preparation and swift action will be key to navigating this period effectively. 

 

Contact us

If you are looking to move home before the stamp duty changes come into effect in 2025, contact your local Guild Member today. 

 

Looking to buy?

Looking to buy?

We'd love to help you on your journey home.
Don't miss out on on the latest properties by registering for our property alerts.

Register with us today

Read What Our
Customers Say

I can't speak more highly of the team at Homesearch. When I met Michael to discuss the sale of my home instantly from that meeting, I could tell how knowledgeable they were. From that moment until closing, everything went absolutely flawless. This experience of selling went without a hitch with them giving great tips on preparing my home for viewings. Thank you. I really appreciate all your help during this process. I highly recommend Homesearch to any person who is looking to sell their home or buy a new home.

Loretta Barrett, Seller

I started with two very well known real estates, but I hated it. I was simply another number to them and I didn't feel they were honest and transparent. With HomeSearch I felt comfortable that they were on my side and they were always available to help. The process is hard enough, so having a team who supports you can make such a difference. Highly recommend.

Arian Barvarz, Seller

The reason we chose Homesearch to sell our property was that we liked the straightforward, no-nonsense approach of both Anna and Michael. They gave an honest appraisal of our property and a clear idea of what we could expect to sell it for. In fact, the offer we accepted exceeded our expectations. The sale took longer than we would have liked, due to delays caused by the buyers' solicitor, but Michael was tenacious and must have worn his phone out keeping everyone informed of progress.

Nicola Watson, Seller

Homesearch are hands down the best agent I have ever worked with ! The team helped me in an extremely complex sale. Without the knowledge and experience of the whole team, my sale would not have completed. I dont normally write reviews, only when they are truly deserved. An exceptional team! Very kind and personable, reliable & trustworthy.

Leslie John, Seller

My experience with Homesearch is that they are professional, friendly and go above and beyond to ensure that something stressful like selling a house runs as smoothly and stress free as possible. They work hard to get the results and have kept me updated throughout the process. I honestly could not recommend them enough, they are easily the best company I’ve dealt with in the buying/selling houses field. And to top it all off, they always answer the phone in the most pleasant tone and always provide service with a smile.

Chanelle Hunte, Seller

Homesearch are PROFESSIONALS. I sold my property through Homesearch and I have not dealt with a more competent agency. Every single person  dealt with knew exactly what they were talking about and I can tell that they all have knowledge in the industry and were not just picked up from the street. From the get go I was impressed and I will certainly do business with them again.

Paul Hobbs, Seller

Many thanks Homesearch for locating professional corporate tenants for my property. I am very happy with your property management service as you always ensure that the tenants give the property back in good order at check out. Five Stars!

Maria Foran, Landlord

I have been absolutely delighted with the exceptional service I have received from Homesearch. They have removed all the stress & hassle of renting my property and dealt with all manner of situations I would have struggled with in such a professional & courteous manner. They give valuable unbiased advice with such a wealth of experience. Nothing is ever too much trouble for the staff, who are always friendly & helpful. Homesearch let and managed my property and I am very happy with their property management services, they are very knowledgeable.

Paula Carter, Landlord

Homesearch always do what they say they will do. They are efficient and raise any issues early and provide options to resolve them. Homesearch is very  easy to get hold of and talk to, no matter where I am in the world! My property is well looked after, regarding tradesmen, replacement of items swiftly etc. with the minimum of fuss.

David Connells, Landlord

From our first viewing right through to the present, Home Search were brilliant. They helped make the whole process quick and stress free and even now we are in and settled, they are still happy to assist us with any queries we may have. We couldn't recommend them highly enough.

Julie Maney

Home Search helped us move into our new flat smoothly and Tim was always happy to provide help to put our nerves at ease. Arranging a viewing was easy and Home Search were happy to open after hours for us to sign the paperwork. They were very helpful and often would offer to help! Having moved in we received a lovely card and they have always been swift in communicating with Usif we have any questions. Would recommend it.

Will Houghton

Michael and his team were simply amazing!! They helped us to find the perfect house, offering a nice and attentive service from the beginning through to the end. Thank you so much!! 5 stars service. Highly recommended!!!

Giordana Sicali

Very helpful and friendly staff. Tim, Michael and the team Made the whole renting experience easier.

Amol Sinare

I had a very difficult situation as I did not have a guarantor and my dad was earning enough but was not a homeowner. It took a about 3 weeks but Michael sorted it all out in the end and my dad became my guarantor. I got a lovely home and all the staff were very helpful including Paris, Zainab and Tim. Thank you all very much! Would recommend them to anyone

Misti Chakraborty

On behalf of myself, Noa & Niamh, we would like to start off by saying a massive thank you for the amazing service Home Search Ltd provided us with, especially highlighting the work of Clorissa. Within a week we were able to sign, seal and move into the property that we looked at, all down to Clorissa's prompt and effective work ethic, which allowed us a smooth transition from one property to another, without her, this move would not of been possible to have happened within the time stamp that it did. We are very grateful for the work that was done by Home Search Ltd, highly recommend.

Lewis Francis
How Much is Your Property Worth?

Expert Valuation

We always come armed with evidence and statistics of why we are pricing your property a certain way. We know the importance of getting the initial price of your property right, first time. With our extensive experience we will also explain current market conditions as we want to get our sellers the best price.

What's more, get a free gift with your free expert valuation with one of our experienced Valuer's.

Book a Valuation