What Buyers and Investors Need To know
Andy Hiesley, Head of Property Services
If you’re considering buying a residential property in the UK within the next 12 months, now is the time to act. Upcoming changes in Stamp Duty Land Tax (SDLT) thresholds will cost buyers more if they complete their purchases after 31 March 2025. The latest budget confirmed that no amendments will be made to these plans, so prospective buyers must take action to avoid a potential increase in SDLT liabilities.
At Heringtons Solicitors, we understand that SDLT can be one of the more complex and costly elements of buying a property. Read on to understand how these changes could affect you and how you can still benefit from the temporary thresholds if you act soon.
Current SDLT Rules: What’s Changing?
In 2022, temporary SDLT relief measures were introduced, increasing the threshold at which SDLT applies to certain transactions. Here’s a breakdown of the current SDLT relief that remains in place only until 31 March 2025:
- General SDLT threshold: Under current rules, no SDLT is payable on properties valued up to £250,000, a significant increase from the usual £125,000 threshold.
- First-time buyers: First-time buyers currently benefit from an even higher threshold, paying no SDLT up to £425,000. The maximum property value to be eligible for this relief was raised to £625,000, rather than the standard £500,000 limit.
These changes have provided a unique opportunity for home movers and first-time buyers to make substantial savings on SDLT. However, after 31 March 2025, these reliefs will expire, with thresholds returning to previous levels.
What Could the SDLT Changes Mean for You?
Once the temporary thresholds are removed, most buyers will see an increase in SDLT costs, particularly for properties priced over £250,000.
- For general home movers: The change in the lower threshold could mean up to an additional £2,500 in SDLT costs.
- For first-time buyers: Once the relief thresholds revert, first-time buyers may face up to £11,250 more in SDLT.
Why Buyers Should Act Now
Property purchases typically take 12 weeks or more to complete, which means buyers wishing to secure the current SDLT rates must move swiftly to initiate the conveyancing process. By starting your house purchase journey now, you could take advantage of the current SDLT relief, potentially saving thousands of pounds before the thresholds change in April 2025.
Please note that we cannot guarantee completion timescales, as there are so many factors outside our control.
How Heringtons Solicitors Can Support Your Property Purchase
Whether you are a first-time buyer or a home mover, Heringtons Solicitors’ residential property team is here to guide you through the conveyancing process from start to finish. Our experienced solicitors can ensure you stand the best chance of meeting required deadlines, helping purchase your property with reduced costs. We pride ourselves on providing a straightforward, professional, and personal service, helping you understand the details with confidence.
Contact Us to Discuss What Impact The SDLT Increase May Have On You
Our team is ready to assist with all aspects of residential property transactions and can calculate the likely effect on your purchase if you don’t meet the 31 March 2025 deadline. This will help you budget effectively whilst achieving any possible savings on your SDLT liability before the upcoming threshold changes take effect.
For further information, contact us today. Whether you’re a first-time buyer or a seasoned home mover, we’re here to help make your property purchase as simple and cost-effective as possible.