Homebuyers looking to move in 2025 are being urged to act now to avoid an impending stamp duty rise that could see them paying thousands more in tax.
At present, no stamp duty is payable on properties up to £250,000. However, from 1st April 2025, this threshold will drop significantly, with tax kicking in on homes worth more than £125,000. Buyers will be charged 2% on the portion between £125,000 and £250,000 and 5% on the portion between £250,001 and £925,000.
A survey conducted by David Wilson Homes South West of 500 prospective buyers found that more than a third (36%) were completely unaware of the upcoming changes. A further 38% had heard about the changes but lacked detailed knowledge, while only 26% fully understood the impact.
With the changes just months away, experts are advising buyers to complete their purchases before the deadline to avoid unnecessary costs. According to official figures, a home priced at £295,000 would currently incur £2,250 in stamp duty if bought before 31st March 2025. From 1st April, the same property would be taxed £4,750 – an increase of £2,500. For a home worth £550,000, the increase is even steeper, rising from £15,000 to £17,500.
Terry Higgins, mortgage expert and Group MD of TNHG New Build Mortgages, highlighted the importance of acting swiftly: “The upcoming stamp duty changes could have a big impact, particularly on first-time buyers and those looking to move up the property ladder. For those purchasing homes over £300,000, the reintroduction of tax will add to their expenses, making affordability a bigger challenge.”
David Wilson Homes South West is encouraging buyers to take advantage of current rates before they increase. At Buckley Gardens in Melksham, for example, the three-bedroom Hadley at plot 54 is ready for immediate move-in. Buyers who complete their purchase before the deadline could save up to £4,250 in stamp duty alone, and the home also comes with an upgraded kitchen and flooring worth nearly £11,000.
Louise Ware, sales director for Barratt David Wilson Homes South West, commented: “We don’t want buyers to miss out. Our team at Buckley Gardens is available to discuss the offers that could make moving home more affordable before the changes take effect.”
Buckley Gardens offers a range of two, three, four, and five-bedroom homes, with 43 affordable properties available through shared ownership in partnership with Heylo. Set within seven acres of open space and just a short drive from Melksham town centre, the development provides excellent transport links, including easy access to Bath, Bristol, and Swindon via the M4.
With the deadline fast approaching, those considering a move are being urged to act now to avoid the increased costs set to take effect in April.
