The forecast indicates a significant drop in SDLT-free homes available to first-time buyers next year.
- The stamp duty threshold reduction will decrease eligible properties by over 90,000.
- Cities like Bristol and Leicester face sharper declines compared to the national average.
- Adam Day of eXp UK highlights the urgency for buyers to act swiftly.
- Despite budget hopes, no extension on stamp duty relief was announced.
The looming reduction in SDLT-free properties poses a serious challenge to first-time buyers in England. Currently, 62% of homes for sale are priced below £425,000, making them exempt from Stamp Duty Land Tax. The new regulation, effective from April, reducing this threshold to £300,000, implies that only 42% of properties will remain tax-free. This change represents a drastic cut of over 90,000 eligible homes.
The impact of the revised stamp duty threshold will vary across different cities. While the national expectation is a 20% dip, the reduction in cities such as Bristol is projected to reach 34%. Leicester is also expected to experience a 26% drop, and Brighton faces a potential decrease of 23%. Conversely, Liverpool and Bradford might see less severe impacts, at 13% and 14% respectively, indicating a more uneven geographic impact.
Adam Day, the head of eXp UK, advised potential buyers to take prompt action. He mentioned that there was an expectation for the recent Autumn Budget to continue the existing stamp duty relief for first-time buyers. However, given that this did not come to pass, the urgency now is for those looking to benefit from the current terms to accelerate their purchasing process. “Those currently on the hunt still have time to beat next year’s deadline but they need to get their skates on and complete within the next five months.”
The anticipated drop in SDLT-free homes underscores the need for first-time buyers to carefully strategise their home buying plans. With a tightening window and fewer options, early decision-making and possible financial adjustments might be necessary to secure a property before April’s change takes effect.
First-time buyers in England face a shrinking supply of SDLT-free homes, urging swift actions to secure purchases.
