What to Expect in the Housing Market After the Latest SDLT Change
What to Expect in the Housing Market After the Latest SDLT Changes
With the upcoming Stamp Duty Land Tax (SDLT) changes due on 31st March 2025, many buyers, sellers and investors are considering the effect that the adjustments will have on the property market. The changes could influence a number of things, including affordability, demand and investment strategies across the board.
In this blog, we explore how the housing market may respond to these updates and what this means for different types of buyers. If you want to find out more about what the changes are going to be, read our blog.
Increased Demand in the Lower Price Brackets
The extended SDLT relief for first-time buyers means that they will not pay tax on purchases up to £300,000, changing from the current £425,000. This means we can expect to see a drive of activity at the lower, more affordable end of the market. As a result:
- Demand for lower-priced homes is likely to rise, especially in urban areas.
- Competition could push prices up for properties under the threshold.
- Developers may focus more on new builds aimed at first-time buyers.
Higher Costs for Mid-Range and High-Value Properties
The tax-free threshold for all other buyers (excluding first time buyers) is decreasing from £250,000 to £125,000. The impact of these changes could lead to:
- Increased costs for mid-range buyers, as more transactions will be subject to SDLT.
- A rush to complete purchases before 1st April 2025 to take advantage of current rates.
- A slowdown in higher-value transactions, particularly in London and the South East as buyers adjust to the higher costs.
Challenges for Buy-to-Let Investors
The stamp duty changes, along with the new Renter’s Rights Bill - set to come into play sometime after Easter 2025 – means that landlords and investors could face some barriers. For example:
- Some may rethink expanding their portfolios.
- There could be a shift towards alternative investments, such as commercial property or overseas markets.
- A reduced supply of rental properties may push up rental prices.
To find out more about the new Renter’s Rights Bill, read our blog.
Regional Differences in Market Impact
The effects of SDLT changes won’t be felt equally across the country. We may see:
- More demand in lower-cost areas where SDLT savings make a bigger impact.
- Continued price stabilisation in locations where affordability has already been a challenge.
- Potential future government incentives aimed at stimulating growth in specific regions.
What This Means for the Market
While SDLT changes can influence buyer behaviour, other factors like mortgage rates, inflation, and housing supply also play a big role in shaping market trends. In the months ahead, we can expect:
- A short-term increase in transactions as buyers rush to complete purchases before April 2025.
- A potential slowdown in mid-range and high-value transactions post-April due to increased SDLT costs.
- More demand in affordable regions where SDLT savings have the most impact.
- Landlords and investors reassessing their strategies in response to both SDLT changes and the upcoming Renter’s Rights Bill.
- Further government interventions or SDLT reforms that could create shifts in demand.
Need Advice on SDLT?
Whether you're buying, selling, or investing, understanding how Stamp Duty Land Tax affects your plans is essential. Our experienced conveyancing team at Bell Lamb & Joynson Solicitors can provide expert guidance and legal support to help you move forward with confidence.
You can contact us on 03444 124 348 or speak to our live chat which is open 24/7.
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