West Yorkshire housebuilder Barratt and David Wilson Homes is advising buyers looking to move home in 2025 to consider doing it now to avoid the rise of Stamp Duty fees from April.
Currently, home buyers don’t have to pay the land tax on properties up to the value of £250,000. However, Stamp Duty will be introduced on properties worth more than £125,000 from 1st April 2025. Home buyers will then pay 2% on the portion between £125,000 and £250,000 and 5% on the portion between £250,001 and £925,000.
The table below, outlined by Barratt Homes and David Wilson Homes, breaks down the Stamp Duty charges for property values before and after the change in April.
This could be a significant increase for anyone taking the next step on the property ladder.
Barratt and David Wilson Homes also surveyed 500 prospective buyers and found that:
- 36% admitted they weren’t aware of the changes at all.
- 38% had heard about the changes but lacked detailed knowledge.
- Only 26% stated they were fully aware.
The survey also revealed mixed opinions about the fairness of the new thresholds, with 22% of respondents unsure about the changes and others expressing concerns that the measures don’t go far enough.
As noted on Gov.uk, Stamp Duty on a property worth £295,000 would see home buyers taxed £2,250 for the move if it’s completed on or before 31st March 2025. From 1st April 2025, the Stamp Duty on a property with the same value would be £4,750.
Breaking this down further, Stamp Duty on a property worth £550,000 would increase from £15,000 to £17,500 after March, which might mean house hunters have to compromise on their dream home.
Terry Higgins, group managing director at New Build Mortgage Services, said: “The upcoming changes to Stamp Duty in April 2025 could have a big impact on buyers. The temporary increases to thresholds that were put in place in September 2022 will come to an end impacting everyone planning to move, particularly those taking their first step on the property ladder or moving to a new home. For first-time buyers, the re-introduction of tax on properties over £300,000 means they’ll need to budget for higher costs, which could make it harder to afford their ideal home.
“For existing homeowners and downsizers, the increased rates could mean paying thousands more in tax, especially in areas where property prices are higher. However, there’s still an opportunity to avoid these extra costs by completing a purchase before the changes come into effect on 1st April.
“Acting now could save buyers thousands, and it’s a great time to explore properties that are ready to move into ahead of the deadline. Seeking advice and planning carefully will ensure buyers make the most of the options available to them.”
To help anyone looking to make a move before the increase in Stamp Duty comes into effect, Barratt and David Wilson Homes has invited prospective buyers to visit its developments across West Yorkshire to view the properties available to complete their move before April.
Sam Wood, sales director at Barratt and David Wilson Homes, said: “We encourage property seekers looking to make a move this year to visit our developments across West Yorkshire to learn more about our properties that are ready to move into ahead of the Stamp Duty changes from 1st April.
“We don’t want anyone to have to compromise on their dream home and our Sales Advisers are on hand to discuss our offers available, some of which include Stamp Duty paid on selected properties.
“Our developments all have moving schemes and offers to make a move more affordable for our customers and we are ready to help prospective buyers take the first or next step on the property ladder in 2025.”
