Lloyds Banking Group anticipates a 50% growth in property completions this month as buyers race to beat the upcoming Stamp Duty Land Tax (SDLT) changes taking effect on 1 April 2025.
The UK’s largest mortgage lender, which includes Lloyds Bank, Halifax, and Bank of Scotland, says it has been working with conveyancers and mortgage brokers to ensure transactions are processed on time.
To support buyers, the bank has guaranteed completion for all cases submitted by 25 March but warns that those submitting after this date may face delays and the risk of higher tax bills.
WHAT’S CHANGING?
From 1 April, key changes to SDLT will impact both first-time buyers and home movers. The most significant adjustment is the reduction of the nil-rate threshold from £250,000 to £125,000, meaning more buyers will now face SDLT charges.
Under the new rules, home movers will pay 2% tax on the portion of a property’s value between £125,001 and £250,000, whereas previously this amount was tax-free.
For first-time buyers, the tax-free threshold will drop from £425,000 to £300,000, and the maximum property value eligible for first-time buyer relief will reduce from £625,000 to £500,000. This will particularly impact those purchasing in London and the South East, where property prices often exceed these limits.
HIGHER COSTS FOR BUYERS DELAYING COMPLETION
Homebuyers failing to complete before 1 April will face substantially higher SDLT costs. For example:
- A first-time buyer purchasing a £400,000 home will now have to pay £5,000 in SDLT, whereas previously they paid nothing.
- A home mover buying a property priced between £125,000 and £250,000, who previously paid no SDLT, will now face an additional charge of up to £2,500.
SUBMISSION GUARANTEE
Lloyds Banking Group has been coordinating efforts with conveyancers and mortgage brokers to help buyers meet the deadline. The bank is urging conveyancers to submit Certificates of Title as early as possible and no later than 25th March to ensure completion before the tax change takes effect.
Amanda Bryden, Head of Halifax Intermediaries & Scottish Widows Bank at Lloyds Banking Group, emphasised the urgency for buyers and brokers: “With the new thresholds for Stamp Duty coming in just days, we are expecting a rush of customers trying to complete their purchase and avoid the extra cost. We’ve been working with mortgage brokers and solicitors to get ready for this, and we have seen evidence of many completing purchases early.
“We’ll do everything we can to get completions turned around before the Stamp Duty deadline if they come to us after 25th March, but there’s no guarantee. That’s why we are reminding conveyancers to get Certificates of Title to us no later than the 25th March, and sooner if they can, to be sure to beat the deadline.”
