Upcoming Stamp Duty Changes and the Current Housing Market

With stamp duty thresholds set to fall on April 1st, 2025, potential homebuyers may see an increase in costs. However, despite these upcoming changes, it remains a good time to sell in many areas due to ongoing housing shortages and sustained demand. While house prices may rise at a more measured pace than in previous years, the market remains strong.

Stamp Duty Changes: What You Need to Know

As of April 1st, 2025, the thresholds for stamp duty will revert to lower levels, impacting buyers, particularly in higher-priced regions such as London and the South East. Key changes include:

• The zero-rate threshold for main residences will decrease from £250,000 to £125,000.
• First-time buyer thresholds will drop from £425,000 to £300,000.
• First-Time Buyers’ Relief (lower stamp duty rate) will decrease from £625,000 to £500,000.
• The stamp duty surcharge on second properties has risen by 2%.

These adjustments mean that buyers will need to budget accordingly, especially in regions where property prices are already high.

How Will the Market Be Affected?

Despite these changes, the UK housing market remains resilient. Experts predict that house prices will continue to rise modestly, driven by a shortage of available homes and strong demand. However, sellers may need to adjust their price expectations to align with evolving market conditions.

Timing Your Move: What Buyers and Sellers Should Consider

With the April 1st deadline approaching, some buyers may look to fast-track their purchases to avoid higher stamp duty costs.

Rightmove anticipates a potential backlog in conveyancing, as buyers rush to complete transactions before the new thresholds take effect. If you are planning to move, it may be wise to act sooner rather than later to avoid delays.

Who Pays Stamp Duty?

Stamp duty is always paid by the buyer, not the seller. Typically, a solicitor will handle the payment on behalf of the buyer during the purchasing process.

Stamp Duty Refunds: Are You Eligible?

Buyers may be entitled to a stamp duty refund if they sell their main residence within three years of purchasing a new home. If your purchase took place on or after January 1, 2017, you may qualify for a refund. Consulting with a solicitor or tax specialist can help determine eligibility and ensure that you claim any refunds due.

Final Thoughts

While upcoming stamp duty changes may influence buyer behavior, the property market remains active, particularly in areas where demand continues to outstrip supply. Whether buying or selling, staying informed about these changes will help ensure a smooth transaction.