We are hiring now!
Great opportunities in Cheshire.
1 MONTH LEFT
1 month left to avoid stamp duty hike and recent interest rate changes
In our most recent blog, we highlighted that the Stamp Duty Land Tax (Temporary Relief) Act 2023 is due to revert back to previous levels on 1st April 2025. The confirmation of which having been given by the Chancellor of the Exchequer in October 2024.
In summary:
On 1st April 2025, the current rate will revert back to pre-2023 levels and so homes will be taxed from £125,000.
First time buyers currently only pay stamp duty if their home costs more than £425,000. This will drop to £300,000 in March 2025 and so is likely to have a significant impact on budgets.
For Landlords and professional purchasers, especially those purchasing through a company, the new higher SDLT rate of 5% applied after the first £40,000.00 will remain in force.
Rightmove have declared that the volume of sales agreed in January 2025 was 15 per cent higher than its comparative year. This is further to their estimate in December 2024 that, along with the SDLT changes, there is a predicated surge in transactions for 2025 which is estimated to be 1.15 million.
The Bank of England’s recent reduction of the base interest rate to 4.5%, and the anticipation of the same, has proven to be a welcomed catalyst in stimulating the housing market. It is noted that the amount of transactions reported by estate agents, law firms and mortgage brokers is significantly higher than usual. Levels not seen since the last stamp duty holiday.
Yesterday, The Times published recent data from Rightmove of mortgage approvals increasing by 49% indicating that the property market is rapidly warming up.
It is now a question as to whether the levels seen in the property market can be sustained, and whether they may inadvertently lead to a crash.
We repeat our encouragement to all those actively engaged in the property market or thinking about entering to bear this in mind.
If you have any questions about the conveyancing process or wish to get a quote for the costs involved, why not call our team at mosshaselhurst Solicitors on 01606 74301?