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A guide to understanding stamp duty changes
With 31st March fast approaching, the Government’s changes to stamp duty are set to make purchasing a home more expensive for many buyers. If you’re planning to move, it’s important to act now to avoid higher taxes.
At Lancet Homes, we’re here to help you understand these changes. Here are some of the reasons why you should consider buying a Lancet home and making your move before the thresholds increase.
What are the stamp duty changes?
In September 2022, the Government temporarily raised the thresholds for paying stamp duty, allowing buyers to save on taxes for properties under specific price points. However, this temporary relief will end on 31st March 2025.
Once the changes take effect, many buyers who would currently pay little or no stamp duty will see their costs to purchase a home increase from April 2025.
How will this impact buyers?
First-time buyers, who currently enjoy generous tax relief will need to pay more stamp duty land tax (SDTL) on properties above the reduced threshold. For example, purchasing a £350,000 home, which currently does not require you to pay stamp duty, will cost you £2,500. This increase in upfront costs may make it harder to save for a deposit or afford other expenses associated with buying a home.
Home movers looking to upgrade or downsize will also feel the pinch. The return to lower tax-free stamp duty threshold means higher taxes on properties over £250,000, potentially adding thousands to the cost of moving. Similarly, investors and second-home buyers will also see an increase, as they are required to pay an additional 5% on top of the rates.
How can you prepare?
To prepare for these changes, acting early can make a big difference. Buyers who complete their purchases before 31st March 2025 can still benefit from the current stamp duty thresholds. If you’re already in the process of buying a home, work closely with your solicitor and lender to ensure a timely completion.
Buying a new build home can also help offset SDLT costs. Lancet Homes has a range of move-in ready homes available now that can allow you to secure your dream home and beat the upcoming changes to stamp duty.
How Lancet Homes can help
From helping you understand the changes to guiding you every step of the way, our experienced team at Lancet Homes aim to make the home-buying process as seamless and cost-effective as possible.
Contact us today to book a viewing to see our beautiful new homes for sale in the north west up close and learn more about how we can help you secure your dream home before the changes to stamp duty.