Stamp Duty Changes in detail

The Property Nomads Podcast

Rob delves into the recent changes to Stamp Duty in England and Northern Ireland, providing a comprehensive overview of the new rates and their implications for both first-time buyers and property investors.

He highlights the current rates effective until March 31, 2025, and outlines the upcoming changes set to take effect on April 1, 2025, as well as the potential impact of these changes on the property market, including the possibility of reduced investment in rental properties and the resulting effects on supply and demand.

KEY TAKEAWAYS

• The current Stamp Duty rates for residential properties in England and Northern Ireland will remain in place until March 31, 2025. After this date, the thresholds and rates will change, with the zero rate for main residences decreasing from £250,000 to £125,000.
• First-time buyers may benefit from reduced competition in the market due to higher costs for investors, potentially making it easier for them to enter the property market.
• The additional Stamp Duty rate for investment properties will rise from 3% to 5%, which may deter some investors from purchasing rental properties, leading to a potential decrease in the supply of rental homes.
• The changes in Stamp Duty could lead to a rush of transactions before the new rates take effect, followed by a possible drop in demand and transactions after April 1, 2025, particularly in regions with higher property values.
• Those in the process of purchasing a property should confirm their Stamp Duty obligations with their solicitors, especially if they have exchanged contracts but have not yet completed the purchase, as they may still be bound by the pre-budget rules.

BEST MOMENTS

"The purchase price when it's up to 250,000 or 425,000 for first time buyers, then the stamp duty rate is effectively zero."

"If more people were sitting on the fence about I could go and buy some property or I might not, then they might look at these increased transaction costs."

"What could the impact of that be? Well, people purchasing properties above 125,000 will face higher stamp duty land tax liabilities."

"The threshold for first time buyers and stamp duty is decreasing... this could lead to reduced investment in rental properties."

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