Stampy duty receipts soared by 20% in February alone as buyers rushed to beat the 1st April deadline for changes to the tax regime. We expect an even bigger increase in March for those trying to complete by the 31st. 

From 1st April 2025, the £250,000 tax-free threshold for stamp duty will be reduced to £125,000. With the average house price now at least £183,000, this will mean that most buyers will now have to pay the tax, including many first time buyers. The lower rate which applies up to £675,000 will be 2%, so that's £1,160 on the average house. 

It won't be helpful to many first time buyers who already struggle to afford to buy their first home, especially when rents are so high; ironically also a result of high taxes pushing out landlords and creating a shortage of rental homes. 

Many industry experts predict that the tax may also affect house price growth, but with the reduction in interest rates and Spring traditionally being a busy time for selling homes, we may not notice it too much.

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