Homebuyers across England are preparing for a significant rise in Stamp Duty Land Tax (SDLT) starting April.
- Research by Regency Living reveals 99% of local authorities will experience an SDLT increase, affecting a wide range of property transactions.
- No governmental extension of current stamp duty relief was announced during the recent Autumn Statement.
- 67% of local authorities will encounter the maximum SDLT increase of £2,500 due to current average house prices.
- First-time buyers will continue to enjoy higher SDLT thresholds, albeit with some changes to relief levels.
Starting from April, homebuyers in nearly all local authorities in England should brace for a rise in Stamp Duty Land Tax (SDLT). This increase follows a comprehensive study by Regency Living, which found that 99% of these areas will face heightened taxes without any extension of the existing relief levels, as confirmed during the recent Autumn Statement.
The current SDLT structure exempts buyers from paying tax on properties priced up to £250,000. However, the new regulation will alter this threshold, requiring payments of 2% on properties valued between £125,000 and £250,000. This change highlights a significant adjustment in SDLT obligations, particularly for those purchasing homes at £250,000 or above, who will now incur up to £2,500 more in tax.
Notably, 67% of local authorities in England demonstrate average house prices exceeding £250,000. Consequently, these areas are subject to the maximum SDLT increase of £2,500. Research indicates that regions with average prices ranging from £125,000 to £250,000 will witness varied SDLT increases, from a modest £37 in Hyndburn to a substantial £2,483 in Torbay.
Burnley stands out as the only authority with average house prices low enough to evade SDLT, at just £112,640. This disparity in home pricing illustrates the uneven distribution of tax burdens across England, where many existing homeowners will face increased financial constraints.
Tim Simmons, sales and marketing director at Regency Living, expressed concerns regarding the lack of relief extension, stating, “Homebuyers across the nation will be understandably disappointed to see that no extension to current stamp duty relief thresholds was granted in this week’s Autumn Statement.” Simmons highlighted that while first-time buyers purchasing homes priced up to £300,000 remain exempt, existing homeowners face significant cost hikes.
Simmons further remarked, “Many buyers will now pay £2,500 more, bringing the average SDLT obligation to £5,500. In some locations, this figure exceeds £10,000, reaching up to £58,000 in premium areas.” This data underscores the ongoing challenges that SDLT imposes on buyers at all levels, reiterating the draw of alternatives such as the residential park home sector, where stamp duty is not applicable.
The rise in SDLT signals a challenging period ahead for many homebuyers across England.
