Buyers rush to beat 1st April stamp duty deadline

Upcoming changes to UK stamp duty land tax (SDLT) are expected to spark a surge in house sales during the first three months of 2025, as buyers rush to complete purchases before new rules take effect in April.

The temporary stamp duty cut, which has been in place since September 2022, will end on 31 March 2025. This leaves homebuyers with fewer than 12 weeks to finalise transactions before the less generous thresholds are reinstated.

What are the changes to stamp duty?

From April, house buyers in England and Northern Ireland will pay stamp duty on properties costing over £125,000, a reduction from the current £250,000 threshold.

For first-time buyers, the tax-free limit will also change. Currently, they pay no stamp duty on homes priced up to £425,000, but this threshold will drop to £300,000 after the new rules take effect.

How are house prices trending?

The changes come as UK house prices continue to hover near record levels. According to the UK’s largest mortgage broker, the average home cost £297,166 at the end of 2024, following a 3.3% increase in prices over the course of the year. However, there was a slight dip in December, reflecting seasonal trends and cooling market activity.

What does this mean for buyers?

For prospective buyers, the approaching deadline creates both urgency and opportunity. Those able to complete their purchase by the end of March will benefit from the current stamp duty thresholds, potentially saving thousands of pounds.

However, the rush to beat the deadline is expected to increase competition, with estate agents and solicitors likely facing high demand in the weeks leading up to the change. Acting quickly and securing the right advice will be essential for those looking to navigate the busy market successfully. Laura Suter, Director of Personal Finance at AJ Bell said; “We’ll inevitably see a flurry of people looking to lock in their home purchase before the deadline in March – with estate agents and solicitors braced for some long days ahead of the finish line.”

In summary, while the stamp duty changes may pose challenges for buyers in April and beyond, the first quarter of 2025 is shaping up to be a critical window of opportunity for those eager to secure their dream home.