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FT Adviser Stamp Duty

ended 22. September 2023

FTAdviser are looking for quick comments from brokers on the analysis by Coventry Building Society showing that future homebuyers have only 18 months to avoid a Stamp Duty hike which could cost them thousands of pounds, with tax on an average priced home in England set to jump by £2,500 in March 2025. Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Buyers need to know the reduction in thresholds isn’t forever – in 18 months’ time people buying a home over £250,000 will suddenly have to pay an extra £2,500 in tax. That means buyers would need to start saving an extra £140 per month now just to cover the tax hike on their home. In an ideal world the Chancellor is busy cooking up some long-term plans for Stamp Duty which will stop the tax bill on an average priced home virtually doubling overnight." Any thoughts, whizz them across ASAP. 

7 responses from the Newspage community

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Darryl Dhoffer
Founder at The Mortgage Geezer
Another stamp duty deadline which most likely will be canned before then. An election is looming into next year and with a quiet 2023 for mandates on anything house-related, I expect to see government parties placing big emphasis on housing, mortgage schemes and stamp duty thresholds to be revamped and applied in their mandates. To what extent who knows, but for sure if we see the continued downturn in house purchase transactions continue, then all eyes will be on what the government intend to do in 2024, to aid its recovery
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Justin Moy
Managing Director at EHF Mortgages
Given the current state of the property market, it is inevitable that Stamp Duty intervene, as it will be an important factor in jump-starting demand and confidence in housing. Government don't want the situation of lower mortgage rates, but the market stalling due to higher stamp costs.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Highly confident that the thresholds will be kept as they are, or stamp duty will be changed before the current measures end. If not by this government then likely the new one next year.
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Peter Stamford
Mortgage Expert at Stamford Home Finance
The impending Stamp Duty hike adds yet another financial burden to the already costly process of moving house. With solicitor fees, survey costs, and other expenses, homebuyers are stretched thin. An extra £2,500 in tax is significant and could deter potential buyers. It's high time for a long-term, fairer approach to Stamp Duty.
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Graham Cox
Director at Bridging Hub
The change to stamp duty in 2025 has gone largely unreported. As awareness grows next year, It's likely to lead to a surge in buyers, artificially increasing demand and raising prices, when lower prices are what's really needed. It would also be far better in my view for SDLT to be paid by the vendor, helping to prevent property speculation.
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Anil Mistry
Director and Mortgage Broker at RNR Mortgage Solutions
The current situation is less than ideal and warrants a reevaluation. As we approach March 2025, there will be significant pressure on conveyancing firms to finalise purchases before that date. However, even before we reach this critical point, starting from probably the last quarter of 2024, brokers and lenders will already feel the heat to expedite applications into offers as swiftly as possible. An optimal approach might involve a gradual phasing-in of this threshold over several months, rather than a sudden change overnight.
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Gary Boakes
Director at Verve Financial
As an advisor I'm hearing a lot of i'll wait until rates drop, the stamp duty change is a timely reminder that there are still benefits out there to save money on purchasing a property. You could quite easily find yourself in 18 months with rates not much lower but now having to paying to pay potentially £2500 more to move.
The only good thing is that we have 18 months and it is more than likely that they will be changed again before then to try and gain votes. Personally i think a stamp duty freeze on downsizers would be a great incentive to try and get the older generation to move out and free up the some bigger properties or to help people that are needing to downsize because of financial issues.