There has always been a reason not to move, but now, there is a reason you’ve got to move!

The recent autumn Budget was relatively quiet on the property front but one major change was announced to stamp duty tax thresholds which will cost home movers up and down the country millions.

This means that, if you are looking to move, your best chance to get in before stamp duty, is now!

Here’s what’s happening: On April 1, temporary stamp duty thresholds in the UK are set to end. From April, the rate thresholds will change, which means home buyers—whether first-time buyers or home movers—could end up paying significantly more in taxes if they don’t complete their sale before this date.

What is stamp duty currently?: Right now, for home movers, homes worth less than £250,000 do not need to pay stamp duty, but for first-time buyers, the current threshold lies at £425,000.

Who will be affected by stamp duty? For first-time buyers, the current threshold to pay 0% stamp duty is set at £425,000. But after April 1, 2025, this zero-rate band will drop to just £300,000. This change will mean that first-time buyers purchasing a property over £300,000 will be subject to a 5% stamp duty rate.

For first-time buyers already saving for a deposit, this increased tax could be a real setback. Instead of using these funds towards your new home or renovations, they’ll end up paying more in stamp duty.

Other home movers will also be affected. Currently, if you are not a first-time buyer, you pay 0% up to £250,000, but as of April 1st, this threshold is lowering.

A lowered threshold of £125,000 - £250,000 will be enacted at 2% on the property for stamp duty, and 5% at the threshold of £250,000 - £925,000.

Why act now?: With these changes looming, completing your purchase before April 2025 could potentially save you thousands in taxes. If you’re planning a move, starting the process now could be essential to avoid these higher rates.

How can Wards potentially help me save thousands?: By working with a team that includes mortgage advisors and conveyancing professionals, you’ll have the support to complete your sale as efficiently as possible. Our experienced advisors can help you secure the best mortgage deal, while our conveyancing partners streamline the legal side of things, making sure everything is set for a swift completion. Our mortgage advisors at Mortgage Matters Direct work with customers eight weeks faster than the national average from application to exchange*, and we work with Martin Tolhurst Solicitors, who, in 2024, helped exchange 68% of cases in 16 weeks or less**!

So, while there’s always a reason not to move, now there really is a reason you’ve got to move.

Don’t wait until it’s too late—contact us, and let’s make your move happen before April 2025!

What is stamp duty? Stamp duty is a tax in the UK that applies to certain transactions, primarily the purchase of property or land. Officially known as Stamp Duty Land Tax (SDLT), it is calculated as a percentage of the property’s purchase price, with rates varying based on factors such as property value, buyer status (e.g., first-time buyer), and property type (residential or non-residential.) Buyers pay stamp duty at completion, and failure to do so may incur penalties and interest.

Thinking of moving? Contact Wards for more expert advice and info

*Source: Mortgage Matters Direct, November 2024

**Source: Martin Tolhurst Solicitors, November 2024