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Homebuyers urged to make most of stamp duty holiday and potentially save thousands

Homebuyers are being urged to reserve their new property now, to avoid potentially paying thousands more when the stamp duty holiday ends on March 31 next year.

Currently, the nil rate threshold for paying stamp duty sits at £250,000, but it is set to return to £125,000 in spring next year. First-time buyers will be particularly affected, as their current nil rate threshold will return to £300,000, down from its current level at £425,000.

Northamptonshire-based housebuilder Davidsons Homes has warned homebuyers that the change is happening sooner than they may think and has stressed the importance of choosing a new home now to potentially save them thousands when buying.

Simon Tyler, Sales and Marketing Director for Davidsons Homes South Midlands, said: “March next year might feel like a long time away, but in fact that’s only five months away for buyers wanting to make the most of the stamp duty holiday. We are advising all who are interested in moving to choose a new home, get your existing home ready to sell if you have one, and get your finances sorted ready for an exciting new move.

“The changes will particularly affect first-time buyers who, from the end of March next year, will pay a five percent stamp duty tax on properties over £300,000. To put that into perspective, when purchasing a home for £400,000 at the moment, they would pay no stamp duty tax at all. When the holiday ends though, they will pay £5000 in stamp duty – a huge difference and a sum that many may have to save for months  to afford.

“Couple that with October’s welcome news of interest cuts – which is great news for people with mortgages – and this really is the ideal time to buy. In fact, with some of our properties, you could potentially be living in your new home before Christmas if you buy now.”

Stamp duty rates are changing from 31 March 2025, when the temporary increases to the thresholds that were put in place in September 2022 are due to come to an end.

In September 2022, the government announced a temporary change to stamp duty, lowering the upfront costs of moving house. The aim of this was to support the housing market, the jobs and businesses that rely on it, and those who were trying to get on the housing ladder.

Whilst this measure was initially announced as a permanent change, within the 2022 Autumn Statement the government announced that the increase in the residential nil rate threshold will end on 31 March 2025.

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