Experts have warned that “many first-time buyers remain blissfully unaware of the incoming stamp duty changes” and that “even for those with the funds, time is running out to beat the deadline”.
Introduced during the September 2022 mini-budget, the current elevated thresholds – which offer significant relief to home movers and first-time buyers – will expire on 31 March 2025, reverting to less favourable rates.
And it’s likely that this change will disrupt the delicate balance of the housing market and stoke financial anxiety among prospective buyers.
Under the current rules, home movers pay no stamp duty on properties up to £250,000, while first-time buyers enjoy relief on homes priced up to £425,000.
THRESHOLDS WILL PLUMMET
Come April 2025, those thresholds will plummet. Home movers will face a tax-free allowance capped at just £125,000, with a 2% duty on the next £125,000. First-time buyers will see their threshold shrink to £300,000, with no relief for purchases exceeding £500,000.
For many, these changes could mean the difference between securing a home and watching their dreams evaporate in a haze of costly taxes.
Brokers shared their views with Newspage on whether it’s still possible to beat the stamp duty deadline and what buyers need to do to boost their chances of doing so.
BLISSFULLY UNAWARE
Harps Garcha, director at Brooklyns Financial: “Many first-time buyers remain blissfully unaware of the incoming stamp duty changes.
“These could materially impact their homeownership aspirations. While there is still time to meet the deadline, it’s important to highlight that purchasing a property solely to meet a timeline is not advisable—it should be the right fit for the buyer.
“The government’s intention to build more homes is evident, but without meaningful incentives or support for potential buyers, the initiative may struggle.
“This lack of encouragement for private developers raises questions about whether the focus is primarily on social housing rather than a broader strategy for the housing market.”
PULL OUT ALL THE STOPS
Craig Fish, director at Lodestone Mortgages & Protection: “With the temporary stamp duty cut wrapping up, first-time buyers face a harsh reality this Christmas.
“Affording both a deposit and stamp duty could mean the dream of homeownership stays under the tree, untouched.
“Even for those with the funds, time is running out to beat the deadline. With property purchases taking an average of five months to complete, many may have already missed their chance.
“But for those still keen, it’s all about preparation: get your paperwork gift-wrapped and ready, and start viewing properties like they’re the hottest items on the Christmas list. The market slows this time of year, so it’s time to pull out all the stops and make your homeownership dreams a festive reality.”
GET DUCKS IN A ROW
Simon Bridgland, director at Release Freedom: “Time is not on your side if you are trying to beat the end of March deadline.
“It is possible you could beat it if all of your ducks are in a row when it comes to any mortgage application and of course jump onto anything straight away if your solicitor or broker asks for it. Although always a temporary adjustment, to most first-time buyers it will feel like daylight robbery.
“One day they are not paying stamp duty, then the next they are presented with an extra £2,500 in their solicitors’ bill. It’s going to sting and first-time buyers especially will be reeling.
“The real issue is that it will impact the whole of the market not just first-time buyers: all the way up the chain home movers will be affected and so as chains will inevitably collapse if they are not on track to complete before the jump in duty, vendors need to be prepared to consider a re-negotiated price to help their buyers remain able to complete their purchases.”
STILL TIME
Jack Tutton, director at SJ Mortgages: “The stamp duty changes that are coming in have been overlooked by many prospective buyers we have been speaking to.
“Given there was no mention of this in the Autumn Budget, people haven’t realised the changes introduced by the Conversatives were only a temporary measure.
“The changes impacting both first-time buyer thresholds and the tiers at which stamp duty is charged will increase the costs to purchase new properties.
“However, with the changes due to take effect from the 1st April, there is still time to beat these changes providing that the chain works together to achieve a completion date prior to the deadline.”
SPEED IS OF THE ESSENCE
Ken James, director at Contractor Mortgage Services: “Challenging times lie ahead for first-time buyers as stamp duty levels return to pre-relief levels. Many first-time buyers are unaware of the changes coming their way, but if they act quickly they could be making savings in the thousands.
“There needs to be an awakening to this fact and quickly as time is dissapearing faster than water in a leaky bucket.
“If they are looking to cash in on the current stamp levels then speed is of the essence, you never know how fast or slow this process can be but if you prepare well at least you are giving yourself the best chance to get over the line in time.
“You need to make sure you are well prepared and have a good mortgage broker and solicitor who are able and willing to help you to get across the finish line hopefully in time. It’s tight but not impossible if you act and act now.”
OFFER ON PROPERTY QUICKLY
Chris Barry, director at Thomas Legal: “The reduction in the nil rate band for first-time buyers is flying under the radar of many.
“Most people enquiring about conveyancing for their first purchase are unaware of the increased tax payable from April and we have to encourage them to offer on a property quickly.
“The average time to purchase a property in the UK is around 140 days, less for first-time buyers as they don’t need to sell in order for them to buy, so in theory people should look to secure a successful bid on their first home before Christmas on a leasehold property, before February on a freehold property and if they are buying with cash and have no chain either side, they may be able to complete within the month of March.”
DREAMS DASHED
Darryl Dhoffer, founder at The Mortgage Geezer: “So you’re a hopeful first-time buyer, dreaming of homeownership? Unfortunately, the housing market seems determined to dash those dreams.
“With soaring interest rates, a relentless cost of living crisis that’s not thawing out, and looming Stamp Duty increases in April 2025, the future looks bleak for those trying to get a foot on the property ladder. It’s like the housing market is a cruel joke, with each new challenge more disheartening than the last.
“First, we have interest rates skyrocketing, making mortgage repayments a daunting prospect.
“Then, the cost of living crisis adds fuel to the fire, squeezing household budgets and leaving little room for saving.
“And just when you thought things couldn’t get any worse, the government decides to pile on the pressure with increased Stamp Duty. So, perhaps it’s time to resign yourselves to a future of endless rent payments and forget about the dream of homeownership altogether, with no help from the current Government.”
INCREASED COSTS
Iain Swatton, director at Exemplar Financial Services: “First-time buyers are already struggling to find a property in the right area at the right price and securing an affordable mortgage.
“On top of that, they’re being handed a stamp duty deadline that risks inflating house prices and creating a cliff edge for those who can’t move fast enough. With borrowing costs yo-yoing and no meaningful measures in place to support them, those who miss the deadline face increased costs and will feel like they’re being left behind.
“First-time buyers may be resilient to political noise, but they aren’t immune to the financial pressures piling on their dreams of homeownership.”
WHACKED BY TAX
Aaron Strutt, product and communications director, Trinity Financial: “It was disappointing that there wasn’t more in the Budget for first-time buyers and that it is going to be more expensive for many of them to get on the property ladder.
“Many already feel that they are getting whacked by high taxes so an extension of the stamp duty savings would have helped.
“Many people have been saying that the whole stamp duty tax system needs an overhaul. It has basically turned into one giant cash cow. For many, it is going to be very tight to agree to buy a property and then complete the purchase before the deadline. Buyers will need to find a property with either no chain or a less complex one and choose a good solicitor.
“Mortgage lenders normally take between two and three weeks to provide an offer and confirm how much they will lend and that the property is suitable. The legals and property searches can take a lot longer.”
GET THINGS RIGHT
Ross Lacey, director and IFA, Fairview Financial Management: “We specialise in working with first-time buyers and there is definitely still time to get a deal over the line before April.
“The key to this will be getting a decision in principle worth the paper it’s written on and lining up a solicitor to help with the legal side of things.
“This will mean everything is in place should the right property come up and you have an offer accepted.
“It’ll be key to get things right first time round so having a good team of professionals, namely a broker, solicitor and surveyor, supporting the buyer will make all the difference.”
BEWARE THE LOGJAM
Austyn Johnson, founder at Mortgages For Actors: “I don’t beliebe the government have turned their back on FTBs, they have, however, made it even harder for people to buy in higher value areas such as London.
“This means people who would normally have bought may need to wait for another couple of years to save the extra, use help from family, or even consider moving away from their work. Public transport is great, but it does end up being expensive if you are adding 50 miles a day to your commute due to living outside of The Big Smoke.
“If property prices keep on rising, there will be very little available in London for people who fit underneath the new threshold.
“I’m advising any client who is only just getting started to have a chat with parents or make sure they have the extra savings in the bank, just in case they don’t complete on time.
“I can see a bit of a logjam happening early next year with all the mad rush of legals trying to get in before the deadline. Hopefully, most will make it, but for the unlucky few, it will be tough.”
TIME IS TIGHT
Ben Thompson, deputy chief executive, Mortgage Advice Bureau: “Buyers aiming to get ahead of the Stamp Duty changes will need to move quick.
“Time is tight, and there can be a lot to do. The first step should be to have all your paperwork in order.
“Whilst this can be boring, mistakes or delays in providing evidence can severely impact your chances of getting a mortgage offer. Additionally, if you have a gifted deposit, mortgage lenders will often require proof in the form of a ‘gifted deposit letter’ from the donor, confirming they expect no repayment and have no interest in the property.
“Using a gifted deposit can make securing a mortgage easier, especially if it helps you meet the lender’s deposit requirements.
“It could also help to lower your loan-to-value. However, not all lenders accept gifted deposits in the same way, and there may be conditions on who can gift the money (typically close family members).”
