It’s been a busy start to the year at Durden and Hunt with April’s imminent Stamp Duty rises - a hot topic amongst both buyers and sellers. Here's some things to consider:
Stamp Duty, or Stamp Duty Land Tax in its full name, is a government tax paid by the buyer on completion and takes into account a selection of factors, from price to buyer’s position (first time buyer, home mover or ownership of more than one property), in order to determine the amount paid.
Over the past few years there have been a number of changes to the scheme typically implemented to help keep the property market moving; including a stamp duty holiday during the pandemic in 2020/2021. As helpful as those were they seem to be a thing of the past with a number of not so insignificant changes set to take place.
First time buyers, who have seen a zero rate threshold, where no stamp duty is paid, of a generous £425,000 will see this decrease to £300,000. According to Rightmove this suggests only 8% of homes for sale in London and 24% in the South East will be stamp-duty free for first-time buyers from April.
The nil threshold for home movers will drop from £250,000 to £125,000 whilst an additional threshold band is due to be added for those purchasing additional properties with no nil thresholds to benefit from on these.
After the initial thresholds, the amount to be paid is determined by brackets, depending on the price of the property and position, from 2% to 12%.
This being said its likely 2025 will remain a buyer’s market so it’s important to take into consideration these changes to stamp duty when determining your affordability or indeed the price of your home so why not speak to myself or my team to help outline your options.
Written by James Hunt, Durden and Hunt Co-Founder
Wanstead Estate Agent, Loughton Estate Agent, Hornchurch Estate Agent, Canary Wharf Estate Agent, Ongar Estate Agent, Colchester Estate Agent
