Homebuyers are now paying 96.8% of the asking price, according to Zoopla, the highest out of any point in the last 18 months.
With the Stamp Duty relief to be reversed as of 31st March 2025, and buyers paying more on rising house prices, Rachel Reeves should really consider prioritising Stamp Duty in the Autumn Budget.
Stevie Heafford, Tax Partner at HW Fisher commented “We urge Chancellor Rachel Reeves to prioritise Stamp Duty in the next budget. If Labour is hoping to create a better property market, then it needs to prioritise support for first-time buyers and home buyers alike. With house prices rising and cost of living at an all-time high, the government should strongly consider extending the Stamp Duty tax relief provided to first-time buyers through the previous government.”
First-time buyers
For first-time buyers, a special nil-rate threshold applies for properties that do not exceed the maximum purchase price. At present, the special nil-rate threshold is £425,000 and the maximum purchase price is £625,000. However, from 31 March 2025, these will reduce to £300,000 and £500,000 respectively. For a first-time buyer purchasing a house in the UK for £425,000, they will be worse off by £6,250.
Homebuyers
For a homebuyer, excluding first-time buyers, the general nil-rate threshold will reduce from £250,000 to £125,000 from 31st March 2025. For those acquiring a house for £350,000, this change will give rise to an SDLT bill of £7,500 – an increase of £2,500 over the current residential rates. The same increase will apply to all purchases in excess of £250,000.
