SDLT increase to hit buyers in 99% of local authorities
Stamp Duty Land Tax (SDLT) increase coming in April 2025 will hit buyers in 99% of local authorities, research from over-50s property specialist Regency Living has found. Home buyers in around two-thirds of local authorities will likely be hit by the maximum increase of £2,500.
As it currently stands, existing homebuyers pay no SDLT on any purchase up to £250,000, with only 5% charged on the proportion of house price between £25,001 and £925,000, 10% on the proportion between £925,001 and £1.5 million, and 12% on any value of a home above £1.5 million.
The thresholds differ for first-time buyers who do not pay any SDLT on any purchase made up to £425,000, with 5% being applied between £425,001 and £625,000. There is no relief being afforded on first-home purchases above £625,000 however.
From April 2025, the current SDLT relief in place will come to an end. Hopes of an extension have been dashed during the Autumn statement.
Existing home buyers will, as a result, be paying more SDLT from April next year when the previous threshold of 2% is to be reintroduced for a home between £125,000 to £250,000. For anyone buying a property for £250,000 or more, could be hit with the maximum rate of £2,500 while those buying a home below that will pay an additional 2%.
Analysis of current market values by Regency Living has found that existing homebuyers in 99% of authorities in England will be hit by an increase with 67% of local authorities seeing existing homebuyers paying the maximum increase of £2,500 due to the current average prices there exceeding the £250,000 threshold.
An additional 32% of local authorities in England are home to an average house price of between £125,000 and £250,000. This means that they will see in increase ranging from £37 in Hyndburn, where average homes cost £126,861, to £2,483 in Torbay where £249,135 is the average market value of a home.
Only one area of the market will see existing home buyers exempt from SDLT from April 2025. Burnley, with average homes being valued at £112,640, sits well below the £125,000 threshold.
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