As the new year begins, the property market prepares for a significant change: the Stamp Duty Holiday will officially end on 31st March. Introduced during the pandemic to boost the housing market, this temporary reduction in stamp duty has allowed buyers to save thousands on property purchases. It’s been a lifeline, especially for first-time buyers, but as the deadline approaches, many are wondering how the return to normal rates will affect their plans.

What Was the Stamp Duty Holiday?

The Stamp Duty Holiday temporarily raised the threshold at which buyers began paying Stamp Duty Land Tax (SDLT) in England and Northern Ireland. During the holiday, no stamp duty was payable on properties up to £500,000, offering savings of up to £15,000. This initiative revitalised the property market during uncertain times, encouraging transactions and making homeownership more accessible for many.

What Happens After 31st March?

With the holiday ending, stamp duty rates will revert to their standard levels for main residences from 1st April:

Up to £125,000: 0%

£125,001 to £250,000: 2%

£250,001 to £925,000: 5%

£925,001 to £1.5 million: 10%

Above £1.5 million: 12%

For first-time buyers, some relief remains: no stamp duty is payable on properties up to £300,000, and reduced rates apply up to £500,000. So, if you are a first time buyer paying more than £500,000 for the property then you are not entitled to First-time Buyer rates and instead will pay the standard rate for main residences.

Buyers of additional properties (e.g., buy-to-let investors) must also account for the 3% surcharge on top of these rates.

Impact on Buyers and Sellers

For buyers completing transactions after 31st March, the return to standard rates could mean significantly higher costs. For instance, purchasing a property valued at £400,000 will incur a stamp duty charge of £10,000 compared to £7,500 during the holiday. These changes may lead some buyers to accelerate their purchases before the deadline, while others may need to reassess their budgets or timelines.

Sellers may also notice shifts in market demand as the increased costs influence buyer behavior.

How Lewis Denley Can Help You Navigate This Change

The end of the Stamp Duty Holiday highlights the importance of expert legal advice when navigating property transactions. At Lewis Denley Solicitors, we’re here to help ensure your move is as seamless and stress-free as possible.

Why Choose Lewis Denley?

Expert Guidance: Our team is well-versed in property law and SDLT regulations, ensuring your transaction is handled accurately and efficiently.

Client-Centered Approach: We provide a personal, approachable service tailored to your unique circumstances.

Efficiency Through Technology: With our modern, tech-driven processes, we help reduce delays and make your transaction as smooth as possible.

Act Now Before the Deadline

If you’re in the middle of a property transaction or planning one soon, there’s still time to complete before the 31st March deadline. Acting promptly and securing the right legal support can save you thousands in stamp duty costs.

At Lewis Denley, we’re committed to guiding you every step of the way, whether you’re buying, selling, or remortgaging. Let us help you navigate this pivotal time with confidence and peace of mind.

Contact Us Today
Visit our website at lewisdenley.com or call us at 01403 456430 to learn more about how we can assist with your property transaction.

The end of the Stamp Duty Holiday is fast approaching—ensure your property plans are in safe hands with Lewis Denley Solicitors.