UK households must act 'before March' or face £11,250 rise in key bill

A stamp duty £250,000 warning has been issued to buyers ahead of a March 2025 deadline. If you are planning on buying in England or Northern Ireland, act now to try to make sure the purchase is complete before changes in stamp duty come in next year.

Labour Party Chancellor Rachel Reeves opted not to extend temporary thresholds put in place by the previous Conservative Party government, so from next April, you will start paying stamp duty on any property priced over £125,000, down from £250,000 now.

First-time buyers will have to pay on homes worth more than £300,000, a reduction from the current £425,000. In London, where the average price is £524,000, a first-time buyer will lose their benefits and will have to pay £11,250 more than under the current rules.

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Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, explained the window homebuyers need to make the most of: “The temporary Stamp Duty Land Tax [stamp duty, for short] discount will revert at the end of March 2025.

“This reaffirms a window of opportunity for buyers as the nil-rate tax threshold up to £250,000 will drop to £125,000 and the First-Time Buyer’s Relief nil-rate tax threshold of up to £425,000 will drop back down to £300,000.

“These reliefs were destined to end and have been in place for over two years, but it poses yet another challenge for would-be buyers who are struggling to find an affordable home and feel their dream of homeownership is way out of reach.”

Paul Noble, CEO of Chetwood Bank, warned: “The reforms to Capital Gains Tax (CGT), Stamp Duty and Inheritance Tax that will impact the market, forcing landlords and property investors to consider their plans.” Paul urged buyers, owners and the mortgage industry as a whole to “move quickly” with these changes, saying: “It will take some time for the dust to settle from the Budget.

"But now more than ever, lenders have to combine the right products with exceptional client support. This, in turn, will allow all manner of property buyers, as well as existing property owners, to make informed decisions and execute their own plans with confidence.”