Three major changes are likely to hit homeowners and buyers squarely in the pocket in the next few months.
But first-time buyers could act quickly to dodge it, experts claim, as people scramble in the wake of the Budget. And it all comes down to the so-called nil rate.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, explained the window homebuyers need to make the most of: “The temporary Stamp Duty Land Tax [stamp duty, for short] discount will revert at the end of March 2025.
“This reaffirms a window of opportunity for buyers as the nil-rate tax threshold up to £250,000 will drop to £125,000 and the First-Time Buyer’s Relief nil-rate tax threshold of up to £425,000 will drop back down to £300,000.
“These reliefs were destined to end and have been in place for over two years, but it poses yet another challenge for would-be buyers who are struggling to find an affordable home and feel their dream of homeownership is way out of reach.”
Basically this nil-rate threshold means homes below that rate do not pay stamp duty – and those above it do.
She also urged Brits to get independent advice as the mortgage market could become increasingly volatile in the near future.
This has already been proven with some banks like Virgin Money increasing their rates while Santander has cut their rates.
Paul Noble, CEO of Chetwood Bank, highlighted that the changes would help tackle the UK’s housing shortage in the long-term.
He warned: “The reforms to Capital Gains Tax (CGT), Stamp Duty and Inheritance Tax that will impact the market, forcing landlords and property investors to consider their plans.”
Paul urged buyers, owners and the mortgage industry as a whole to “move quickly” with these changes, saying: “It will take some time for the dust to settle from the Budget.
“But now more than ever, lenders have to combine the right products with exceptional client support.
“This, in turn, will allow all manner of property buyers, as well as existing property owners, to make informed decisions and execute their own plans with confidence.”
