Future homebuyers have only 18months to avoid a Stamp Duty hike which could cost them thousands of pounds, with tax on an average priced home in England set to jump by £2,500 in March 2025, according to analysis from Coventry Building Society.
Homebuyers currently pay Stamp Duty if their home costs most than £250,000. In March 2025 this will drop to £125,000 – taking the tax bill on an average priced home in England from £2,822 to £5,322.
First time buyers currently pay Stamp Duty if their home costs more than £425,000, which is set to drop to £300,000 in March 2025.
In August homebuyers collectively paid £1.1bn in Stamp Duty, which is the highest monthly figure so far this year, making the year-to-date total £7.6bn, according to the Society’s analysis.
Jonathan Stinton, Head of Intermediary Relationships at Coventry Building Society, said: “Buyers need to know the reduction in thresholds isn’t forever – in eighteen months’ time people buying a home over £250,000 will suddenly have to pay an extra £2,500 in tax. That means buyers would need to start saving an extra £140 per month now just to cover the tax hike on their home.
“In an ideal world the Chancellor is busy cooking up some long-term plans for Stamp Duty which will stop the tax bill on an average priced home virtually doubling overnight. Homebuyers didn’t get a mention in the Spring Budget, so let’s hope there’s something a lot more positive for them in the Autumn Statement.”