Over half a million homebuyers in England are racing to complete their purchases before April 1, 2025, when upcoming Stamp Duty changes could significantly increase their costs.
Rightmove reports a 25% increase in homes sold but awaiting completion, with many buyers facing additional tax bills of up to £11,250 if they miss the deadline.
Chancellor Rachel Reeves announced in the Autumn Budget that thresholds for first-time buyers and second-home purchasers will be lowered, increasing tax obligations.
However, with property sales now taking an average of five months, delays in the conveyancing process could leave thousands of buyers paying more tax due to circumstances beyond their control.
New Stamp Duty Thresholds & Buyer Impact
Current Rates (Before April 1, 2025):
First-time buyers enjoy Stamp Duty relief on properties up to £425,000.
5% tax applies to amounts between £425,000 – £625,000.
New Rates (From April 1, 2025):
Relief threshold drops to £300,000, with the upper limit reduced to £500,000.
Any purchase above £500,000 loses relief entirely, subjecting buyers to standard Stamp Duty rates.
For second-home buyers:
The minimum threshold for Stamp Duty is cut from £250,000 to £125,000.
This increases the tax burden on those purchasing additional properties.
Rightmove estimates that a first-time buyer purchasing a home valued between £500,001 – £625,000 will face an additional £11,250 in tax after April.
Experts are urging the government to extend the deadline to ease pressure on buyers dealing with administrative delays.
Market Response & Government Plans
The average UK property price increased by 0.5% in February to £367,994, lower than the usual 0.8% rise for this period.
In London, where property prices are higher, buyers could face Stamp Duty increases of up to £10,000, according to Marc von Grundherr of Benham and Reeves.
While some buyers have attempted to renegotiate offers, most transactions are moving forward despite the impending tax hike.
The UK government is also working on streamlining the home-buying process to reduce costs and delays.
Housing Minister Matthew Pennycook announced digitalisation and industry-wide coordination efforts that could save buyers and sellers up to £400 million.
What This Means for London Property Investors
If you’re considering investing in the UK, buying before April 1, 2025, could help avoid additional tax costs.
Those investing in London real estate should carefully assess the impact of these tax changes on their budgets.
Contact us today to learn more about the latest Stamp Duty changes and investment opportunities!
