UK homebuyers have been told they need to have their offers accepted before Christmas if they hope to complete before 1 April 2025, when changes to Stamp Duty Land Tax come into effect.
According to the latest Land Registry figures, on average it takes around 3-4 months from having an offer accepted to completion, without taking additional industry strain into account.
Currently, first-time buyers in England and Northern Ireland do not have to pay stamp duty on properties priced up to £425,000. From April 1, 2025, the nil rate threshold for residential properties will decrease from £250,000 to £125,000, which means more homebuyers will pay tax on their purchases.
The threshold for first-time buyers will also drop, with the nil rate band for these buyers reducing from £425,000 to £300,000, and the maximum price eligible for First-Time Buyers' Relief will lower from £625,000 to £500,000.
Sue Bence, COO of Simply Conveyancing, advised: "With Stamp Duty changes on the horizon, it's crucial for buyers to act swiftly. Having an offer accepted and legals in motion before Christmas will give home movers the best chance to avoid the additional financial burden of the new thresholds.
“Since the October Budget, when it became clear that the previous temporary Stamp Duty thresholds would not be extended, and with interest rates gradually steadying, we have seen a significant uptick in transactions as people race to beat the deadline.
"While this is positive on the whole, it puts additional strain on the entire transaction ecosystem from lenders to agents, local authorities and conveyancers, so buyers should be mindful of this to avoid disappointment and being hit with additional moving costs.”
Harps Garcha, director at Brooklyns Financial, said: "Many first-time buyers remain blissfully unaware of the incoming stamp duty changes.
"These could materially impact their homeownership aspirations. While there is still time to meet the deadline, it’s important to highlight that purchasing a property solely to meet a timeline is not advisable - it should be the right fit for the buyer."
Jack Tutton, director at SJ Mortgages, said: "The stamp duty changes that are coming in have been overlooked by many prospective buyers we have been speaking to.
"Given there was no mention of this in the Autumn Budget, people haven't realised the changes introduced by the Conservatives were only a temporary measure.
"However, with the changes due to take effect from the April 1, there is still time to beat the deadline providing that the chain works together to achieve a completion date prior to the deadline.”
Simon Bridgland, director at Release Freedom said: "It is possible you could beat it if all of your ducks are in a row when it comes to any mortgage application and of course jump onto anything straight away if your solicitor or broker asks for it
"Although always a temporary adjustment, to most first-time buyers it will feel like daylight robbery. One day they are not paying stamp duty, then the next they are presented with an extra £2,500 in their solicitors' bill. It's going to sting, and first-time buyers especially will be reeling.”
