Homebuyers purchasing properties at £293,000 could see their Stamp Duty bill more than double from £2,150 to £4,650 due to changes announced in the Government’s Autumn Budget, analysis from Propertymark has revealed.
These changes will come into effect from the 1st of April next year and may significantly impact first-time buyers and homeowners.
Currently, first-time buyers benefit from a Stamp Duty threshold of £425,000, but this will be reduced to £300,000.
As a result, many first-time buyers will incur additional tax liabilities, which could affect affordability in some regions.
First-time buyers in London, looking at an average priced house of £531,212, will be the hardest hit, facing an additional £11,250 in Stamp Duty.
Based on average house prices by region, those looking to move will experience a typical increase of around £2,500 in their Stamp Duty bills.
The new thresholds for Stamp Duty from April 2025 will see properties up to £125,000 remaining exempt, while those priced between £125,001 and £250,000 will incur a 2% charge.
Properties valued between £250,001 and £925,000 will face a 5% charge, those between £925,001 and £1.5m will be charged 10%, and any property above £1.5m will incur a 12% charge.
First-time buyers will still be exempt from Stamp Duty on the first £300,000 of property purchases if the property price is below £500,000.
Nathan Emerson, CEO at Propertymark, said: “The Autumn Budget will likely uplift the housing market over the coming months, as people potentially look to complete before any increases on Stamp Duty come into effect next April.
“It is however important to consider continued house price growth, even in the short to medium term, as overall pricing gains should outweigh any proposed Stamp Duty increases for the very highest percentage of buyers.”
