Older people who are set to face tax increases of up to £2,500 from next April following Stamp Duty changes in the Budget could consider ditching traditional properties and opt for a residential park home instead to save tax.
New research from over-50s property experts has claimed that 99 percent of home buyers will be forced to pay more when buying a house, while two thirds will pay the ‘maximum’ increase of £2,500 following changes to Stamp Duty thresholds announced by Chancellor Rachel Reeves.
From April 2025, those looking to buy a home will pay 2 percent Stamp Duty on properties worth £125,000 or more, whereas now it’s only payable on homes worth £250,000 or more.
That also means that those buying more expensive homes will pay more tax, too, because Stamp Duty is charged on each slice of a property’s value – so 0 percent on the first £125,000, then 2 percent on the second £125,000, then 5 percent on the next amount up to £675,000, then 10 percent on the next £575,000, and finally 12 percent on any further amount over £1.5M.
Analysis of current market values by over 50s property firm Regency Living shows that existing homebuyers in no less than 99 percent of local authorities across England are set to be hit by a Stamp Duty increase.
In 67 percent of these local authorities, existing homebuyers ‘will see the maximum jump of £2,500’ due to the current average house price exceeding the £250,000 threshold.
The firm says that older people could consider residential parks instead if they are worried about affording the extra Stamp Duty tax, because these older living accommodation developments are not subject to Stamp Duty.
Sales & Marketing Director at Regency Living, Tim Simmons commented: “Homebuyers across the nation will be understandably disappointed to see that no extension to current stamp duty relief thresholds was granted in this week’s Autumn Statement.
“The good news is that, for first-time buyers, purchasing a home at £300,000 or less will still see them pay no stamp duty, however, it’s existing homebuyers who are likely to be hit with the largest increase in costs when it comes to purchasing.
“For many, this increase will be £2,500 and will see the average existing homebuyer across England paying £5,500 in stamp duty. However, this climbs north of £10,000 in 55 local authorities and as high as £58,000 in the most expensive areas of the market.
“Whilst having a foot on the ladder does put them at an advantage to some extent, stamp duty remains a substantial financial barrier that delays homebuyers at all rungs of the ladder.
“It’s hardly surprising that one of the biggest draws of the residential park home sector is the fact that park home buyers don’t pay any stamp duty on their purchase.
“So not only do the majority benefit from releasing equity in their bricks and mortar home, but they also face lower costs when purchasing, putting them in a great position financially.”
