Why it matters: The changes mean buyers purchasing a £257,000 property – Ipswich's average house price – will pay £2,500 more in stamp duty if they complete after 31 March 2025, with the tax bill rising from £350 to £2,850.
The big picture: From 1 April 2025, the stamp duty threshold will drop from £250,000 to £125,000, and a new 2% rate will be introduced on properties between £125,000 and £250,000. The first-time buyer exemption will also be reduced from £425,000 to £300,000.
What they're saying: Laura Catania, head of conveyancing at Ipswich-based Attwells Solicitors, warns the changes have "very stealthily" been allowed to go "under the radar" and will have "a significant impact" on local homebuyers.
"First-time buyers, in particular, may find themselves increasingly priced out of the property market as a result of the additional funds they will have to find," Catania says.
By the numbers:
0% tax up to £125,000 (currently £250,000)
2% between £125,000-£250,000 (new band)
5% between £250,000-£925,000 (unchanged)
Higher rates remain the same for properties above £925,000
Be smart: With property transactions taking up to five months to complete, Catania advises local buyers to act promptly:
OpinionMy advice to those who are now looking to purchase is to act now to ensure that they have instructed their conveyancer and mortgage advisors at the earliest possible stage.
The bottom line: While there are hopes the deadline might be extended, Catania suggests this is unlikely given the additional revenue it will generate for the government. She advises buyers to "budget now for the possibility they may not meet the 31 March deadline."
