Stamp Duty increase will hit downsizers, estate agency claims

Property owners looking to downsize their homes will end up paying more Stamp Duty when rates change in April.

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Downsizers will be hit by Labour’s plan not to change the Tory’s  Stamp Duty rate changes, new figures released by Hamptons reveal.

The ‘nil rate’ band for home movers will drop from £250,000 back to £125,000 from April next year. And for first-time buyers, the threshold will decrease from £425,000 to £300,000.

These changes are expected to drag 310,000 more buyers in England into paying Stamp Duty every year, Hamptons says.

Bills increase £2,500

And downsizers could see their Stamp Duty bills increase by up to £2,500, According to analysis of Land Registry data by Hamptons, 56% of homes sold in England this year were above the £250k threshold.

However, if the nil-rate band falls to £125k, this will push this figure up to 88%. So, the average mover purchasing a home in England for £300,830 will see their bill rise from £2,542 to £5,042.

Hamptons says that given it currently takes an average of 126 days between a sale being agreed and completion, most buyers hoping to beat the April deadline will need to agree a deal soon.

For first-time buyers the increase Stamp Duty figure could be up to £11,250, and will hit FTBs in the south of England the most.

For first-time buyers, the outlook is especially challenging.”

Aneisha Beveridge, Hamptons
Aneisha Beveridge, Head of Research, Hamptons

Aneisha Beveridge, Head of Research at Hamptons, says: “For first-time buyers, the outlook is especially challenging.

The number paying Stamp Duty is expected to triple, from 8% to 26%, and to 71% in London, she says.

“This increase could significantly alter the affordability picture for those looking to step onto the property ladder, particularly in the capital and the South of England where property prices are already a bigger barrier to entry.”

Martin Lewis backs scrapping Stamp Duty for downsizers


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