Overview
- From April 1, 2025, the 'nil rate' stamp duty threshold will decrease to £300,000 for first-time buyers and £125,000 for other buyers, doubling the share of first-time buyers subject to the tax.
- The impending changes have driven a 28% year-on-year increase in February home sales, with conveyancing firms overwhelmed and some handling double their usual caseloads.
- An estimated 74,000 buyers are projected to miss the March 31 deadline, collectively incurring an additional £142 million in stamp duty costs.
- First-time buyers in high-cost regions like London face the steepest challenges, with only 9% of homes remaining under the new £300,000 'nil rate' threshold.
- The policy is expected to generate £1.1 billion annually for the government but could slow house price growth and exacerbate regional disparities in housing affordability.