"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"
- Paul Offley - The Guild of Property Professionals
Paul Offley (pictured), 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.
He said: “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."
Under the Consumer Protection from Unfair Trading Regulations, estate agents are required to disclose any information that might influence a buyer's decision to proceed with a property purchase.
Offley explained: “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."
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:
Home movers 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.
Offley said: “As we get into the start of next year, there will be approximately a 12-week period in which the sale will need to be 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 be completed in time. Agents should keep the buyer informed of the timeline and where their transaction is along the way."
Buyers will need to plan transactions now to capitalise on the current thresholds.
Offley concluded: “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."
