Buyers
20/09/2024
From the 1st of April 2025, changes are being made to how much Stamp Duty Land Tax (known as SDLT or Stamp Duty) buyers must pay on the completion of their property purchase.
Stamp Duty is calculated based on the price of the property being purchased, with different rates applicable depending on which price bracket the property falls into.
What Do Buyers Need To Know?
If you are currently in the process of buying a property it is key to be aware of the new Stamp Duty rates coming into effect from the 1st of April. If you have not completed your purchase before this date, the new rules will apply to you, even if you put an offer in or agreed to buy beforehand.
Below we have outlined the key changes for buyers, and specifically how first-time buyers will be affected by the new rates.
Here are the key rate threshold changes to be aware of from the 1st of April:
0% – Decreasing from £250,000 to £125,000
2% – Additional band for properties purchased at between £125,001 and £250,000
5% / 10% / 12% bands – all remaining the same
Band changes for first-time buyers:
0% – Reducing from £425,000 to up to £300,000
5% – Now includes properties from £300,001 to £500,000
If you want to avoid being liable to pay at the new rate, then it is important that your sale is completed before April.
However, if you are only just beginning your journey to buying your next home, then it is important to factor the new amount of SDLT into your budget.
How Could This Affect Sellers?
With the new Stamp Duty thresholds, buyers are facing increased fees when completing their purchases, which could potentially take thousands away from their budgets. This reduction in budget could then lead to sales falling through as buyers have to pull out of their purchases.
If you are thinking about selling in the first quarter of 2025, it’s key to explore all of the available options which could result in a faster sale.
Can I Still Sell Before April?
There is still a small window of time to list your home and complete the sale before the 1st of April.
Our exclusive Swift Move service is one way to reduce the time it typically takes between agreeing a sale on your property and completion. By partnering with a trusted local solicitor, we are able to offer upfront information packs for buyers, which include legal information at the initial stage to help speed up sales and avoid fall-throughs, ultimately giving sellers more security.
This offers a significant advantage to the purchaser and reduces the risk of them incurring unnecessary expenses and having to withdraw further down the line meaning sales are less likely to fall through. Over the past 11 months, our average sale transaction time using Swift Move has been 81 days as opposed to 104 days for normal private treaty sales and only 7% of sales have fallen through as opposed to 30% for normal sales.
The modern method of auction is another way to speed up your sale in order to complete before the 1st of April. Selling at auction is a great alternative for those who need a quick and certain sale. In partnership with the Great Yorkshire Property Auction, we can offer a cost-free option to sell your property in a 56-day timescale and expose it to a wider nationwide marketplace. Our innovative online property auction service enables you to buy or sell your property from the comfort of your home with access to the site 24 hours, seven days a week.
Want to discuss your options for selling? Get in touch with your local Robert Watts team today to find out how we can help you on your property journey.
Buyers
Buyers
