Newcastle homeowners shouldn't worry about Stamp Duty hike, according to legal expert
As Stamp Duty changes come into effect, many homeowners will be worrying about the impact on moving home. Conveyancing experts from Beswicks Legal have this advice for managing the new tax thresholds.
Though many home movers will have been scrambling to complete their property purchase before the Stamp Duty increase on April 1st, Emma Millington, property and conveyancing partner for Beswicks Legal has emphasised that people shouldn’t worry too much about the hike in taxes.
“Stamp Duty tax thresholds were changed following the Covid pandemic to kickstart the housing market, meaning the 2025 changes will be more like going back to normal than a major upheaval of the system.
The new thresholds mean that the estimated additional payment for a house in Newcastle is £2,456 as the tax is taken only on the value of the home that sits between the thresholds, much like income tax.
However, there are also a few things to consider that could make waiting until after the deadline to complete on your home beneficial:
Mortgage lending review
The government started 2025 by announcing some potential changes they might be making to benefit homebuyers. A review of mortgage lending restrictions could make borrowing easier, allowing more people to get on the property ladder or move home. This should support the market and encourage growth despite changes like the SDLT change.
Interest rates
Mortgage rates have been steadily declining over the past few years, with the current trend seeing a 0.1 percentage drop every couple of months. A drop of 0.2 percent could save the average home buyer as much as £6,000 across the entire repayment period, representing a major saving in the face of an increased tax bill.
House prices
Reports are suggesting that house prices in some parts of the country are rising because of the pressures of the Stamp Duty deadline, meaning waiting until after when the market is a little cooler could pay off for those willing to wait.
Competition
Additionally, competition is much hotter now as people race against time to complete their property purchases before the first of April. However, waiting till after the deadline could allow for less competition when buying for home movers.
The value of your new home
The maximum SDLT increase is £2,500 so reducing your initial offer by this much would allow you to instantly recover this money and would also reduce your overall Stamp Duty bill, resulting in even greater savings.
The value of your current home
When selling your current home, you could also add £2,500 to the minimum price you’d be willing to accept based on the value of your home. By only accepting offers £2,500 than your original minimum price, the increased stamp duty you’ll pay on your new home could be covered.