First-time buyers hoping to benefit from current Stamp Duty thresholds need to get their skates on as there less than six months to go until they are due to be reduced.
However, these thresholds are only temporary and are expected to end on 31st March next year, unless the Chancellor Rachel Reeves chooses to maintain them in the October Budget. If she doesn’t, then from April next year only properties with a value of up to £300,000 won’t be subject to Stamp Duty for first-time buyers, while the reduced 5% rate will only apply to properties worth up to £500,000.
Calls for Stamp Duty thresholds to be maintained
Lenders are calling for current Stamp Duty thresholds to remain unchanged rather than reduced next April, with UK Finance calling for them not only to be maintained but also reviewed annually.
David Postings, chief executive of UK Finance,said: “Affordability is a key factor for any prospective homeowner or mover, as are the associated costs with buying and moving, including solicitors' fees, property surveys and Stamp Duty Land Tax - which can be one of the largest costs when buying a home. We recommend that the nil rate band of £425,000 for first-time buyers is made permanent.”
The previous Stamp Duty holiday was extended for three months in order to allow buyers who were in the middle of the home-buying process to complete on their purchase.
