First time Buyers paying over £300,000 for their home need to buy now to avoid increases in the stamp duty land tax….

Following the Autumn Budget there will be changes coming into effect that will mean first time buyers will be paying (increased) stamp duty on their purchase of a first home: The temporary relief given to first time buyers in 2022 is to be removed, meaning the nil rate threshold for first time buyers currently at £425,000 will be reduced to £300,000. This is something that is likely to affect large numbers of first time buyers in the South East.

From 1st April 2025, first time buyers won’t pay stamp duty on properties up to £300,000 and will pay SDLT at 5% for the portion above £300,000. Therefore, if you’re a first time buyer, paying £400,000 for a property, there will be nothing to pay on the first £300,000 and 5% on the next £100,000 – this means in April 2025, a SDLT charge of £5000 will be due on completion.

Therefore, it is advisable for first time buyers who are likely to pay over £300,000 for their first home, to complete before 1st April 2025 in order to avoid this charge - currently there is nothing to pay up to £425,000. If you’re likely to be purchasing a first home under this £300,000 threshold, there will be no tax to pay and therefore isn’t the same potential rush to completion.

Due to the long conveyancing times required to complete a purchase, it would be good advice for first time buyers who are likely to be spending over £300,000 to find a property and start the process this side of Christmas, to avoid the mad scramble that will be inevitable come March of next year.

Speak to the Sales Team at Sealeys Walker Jarvis to find out how this can affect you and your purchase.

01474 369368 – Option 1.