Time for first-time buyers to jump on the property ladder
For many first-time homebuyers, the process of purchasing a property can be both exciting and daunting.
One of the additional costs to be aware of is Stamp Duty Land Tax (SDLT) - but let’s call it Stamp Duty - a tax that buyers must pay when purchasing a property or land. This can add a significant amount to the overall cost of buying a home, but fortunately, to help ease this burden, the government offers an exemption or reduction in Stamp Duty for first-time buyers (yippee!)
In September 2022, the government announced a temporary increase to the thresholds above which Stamp Duty must be paid.
At the moment, the First Time Buyers' Relief works as follows:
- First-time buyers pay no Stamp Duty on properties worth up to £425,000
- If the property is between £425,000 and £625,000, a reduced rate applies.
- Properties above £625,000 are not eligible for any of this relief.
Sadly, this relief is set to be scaled back quite hard on 31 March 2025, unless extended by the government. Whilst this change will impact everyone planning to move, it's first-time buyers who will be the most affected.
As of 31 March 2025:
- First-time buyers will pay no Stamp Duty up to £300,000 (down from £425,000)
- If the property is between £300,001 and £500,000 the reduced rate will apply (down from £625,000)
- Properties above £500,000 will not be eligible for any of this relief (down from £625,000).
Jump now or face the hike!
If you’re a first-time buyer, you can beat the Stamp Duty changes and take advantage of the current Stamp Duty rates (and save yourself some pennies) by instructing solicitors straight away to complete your purchase before 1 April 2025.
Whilst this date might seem quite far away, the average time to complete a house purchase is between 12 and 16 weeks and can take longer in certain circumstances.
This means that to preserve your sanity, the latest you should start the conveyancing process will be before Christmas 2024... You better get your skates on!
Keep in mind that the government could announce changes or extensions, so it’s worth staying updated on any new announcements leading up to that date.