DID YOU KNOW…

Stamp Duty is changing, so what does it mean for you?

Stamp Duty Land Tax (SDLT) rates are set to change on 31st March 2025, which could significantly increase the cost of moving home, particularly for first-time buyers.
The temporary SDLT thresholds introduced in September 2022 will end, impacting many homebuyers.

What is stamp duty?

Stamp Duty Land Tax, more commonly known as SDLT or simply ‘stamp duty’ is a tax paid when buying a property in England and Northern Ireland.
It’s not payable on all property transactions. For example, many first time buyers currently benefit from stamp duty relief and so may not need to pay any at all.

What stamp duty do first time buyers currently pay?

The relief offered to first time buyers means they currently benefit from a higher 0% threshold for stamp duty than other buyers (as long as the property price is no more than £625,000). Instead of paying stamp duty on the cost of a property over £300,000, they currently only have to pay tax on any amount over £425,000.
Stamp duty for first time buyers is currently set at 5% of the property value over £425,000 and up to £625,000. For properties over £625,000, relief is not available so normal rates of stamp duty apply.
After 31^st March 2025, first time buyers must pay 5% of the property value over £300,000.

What’s changing?

Currently, first-time buyers pay no stamp duty on homes up to £425,000, but from 31st March 2025, this threshold will drop to £300,000. The maximum property price eligible for first-time buyer relief will drop from £625,000 to £500,000.
First-time buyers will be most affected by these changes, as the reduction in the nil-rate threshold and maximum relief limit could make it harder to get on the property ladder.

This means first-time buyers could face up to £6,250 of stamp duty charges when purchasing a home previously exempt from the tax.

So what do I need to do?

You will need to legally complete on your new home by 31st March 2025 to save up to £6,250 on Stamp Duty. Given that the average time to complete a house purchase is 12 weeks, you should aim to start the conveyancing process by the end of 2024.
These changes could add thousands to your home-buying costs, so acting early is crucial if you want to take advantage of the current rates.

The great news is we have a choice of homes that are ready to move into at Rainham, all priced under £425,000 meaning you won’t have any Stamp Duty to pay.

At Sissinghurst, we have Home 10 currently priced at £425,000 and other available homes under £500,000 meaning you can still benefit from thousands of pounds worth of savings.