Inform buyers of upcoming Stamp Duty Changes
The Guild of Property Professionals is advising estate agents to be proactive in informing buyers about the impending changes to stamp duty thresholds in England and Northern Ireland, which could significantly impact purchasing decisions.
Paul Offley, Compliance Officer at The Guild of Property Professionals, highlights the importance of ensuring buyers are aware of the changes that will come into effect on 1 April 2025. “The good news for sellers is that the approaching deadline will likely spur increased market activity, however, it is important that agents make any potential buyers aware that if their property transaction completes after 31 March 2025, they could incur additional stamp duty costs,” he said.
Under the Consumer Protection from Unfair Trading Regulations (CPRs), estate agents are required to disclose any information that might influence a buyer's decision to proceed with a property purchase. “The increase in stamp duty, particularly for first-time buyers, could be a pivotal factor in their ability to move forward with a transaction. It is possible that the buyer is already aware of the changes and has budgeted accordingly, however, the agent should still have the conversation with them and make it known to ensure they have fulfilled their duty,” Offley explained.
Understanding the Changes
Stamp duty thresholds, raised during the September 2022 mini-budget, are set to revert to their previous levels on 1 April 2025. Currently:
Homemovers pay no stamp duty on properties up to £250,000, and first-time buyers enjoy relief on homes up to £425,000.
From 1 April 2025, in England and Northern Ireland these thresholds will decrease:
Homemovers will pay no stamp duty on properties up to £125,000, with 2% due on the next £125,000, and the first-time buyer threshold will drop to £300,000, with no first-time buyer relief on purchases above £500,000.
Implications for the Market
Historically, changes to stamp duty thresholds have triggered surges in market activity as deadlines loom. Sellers may benefit from buyers looking to accelerate their timelines, but agents should caution clients about potential transaction delays as time runs short.
“As we get into the start of next year, there will be approximately a 12-week period in which the sale will need to complete to ensure that the buyer does not incur the additional cost. From the end of January, it will be even more unlikely that the transaction will complete in time. Agents should keep the buyer informed of the timeline and where their transaction is along the way,” Offley said.
Buyers will need to plan transactions now to capitalise on the current thresholds. “Those considering a move should act swiftly. Early preparation and efficient processes will be essential to navigating the market effectively as we approach the deadline,” he advised.
Estate agents are encouraged to communicate clearly with potential buyers and sellers about the upcoming changes, ensuring transparency and compliance with CPRs. The Guild of Property Professionals remains available to support agents through this transition and ensure their clients make informed decisions.
