£6,250 First-Time Buyer Savings Are Set To Vanish, So Act Now!

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£6,250 First-Time Buyer Savings Are Set To Vanish, So Act Now!

Attention all first-time buyers! Are you dreaming of stepping onto the property ladder and finally owning a place of your own? If so, a crucial deadline is rapidly approaching, and it will significantly impact your financial plans. The sales teams around The Robinson Jackson Group are here to ensure you have the vital information you need to make informed decisions about your first home purchase. The time to act is now!

Unrevoked in yesterday’s budget and the most significant stamp duty concession ending is for first-time buyers (FTBs). The changes for FTBs announced by the previous government in September 2022 were not extended by the Chanceller, Rachel Reeves and are set to change at the end of March 2025. Therefore, the window of opportunity to save a substantial £6,250* on your dream home is definitive. This is not just a change, it's a significant saving that you could miss out on if you don't act now. Please take advantage of the savings window before it closes!

What is Stamp Duty and How Does it Affect You?

Stamp Duty Land Tax (SDLT) is a tax levied by the government on property purchases in England and Northern Ireland. The amount paid is based on the standard rates plus several factors that will provide concessions or surcharges. The factors include:

A UK resident
A first-time buyer
Purchasing a property as an individual or company
Replacing a main residence
Purchasing additional property (Note this changed on 31 October 2024 to +5% surcharge)

Current Standard Stamp Duty Rates

The following tax bands run from September 2022 to 31 March, 2025. We have a handy stamp duty calculator on our website against all the properties for sale around The Robinson Jackson Group. Although, please check with your solicitor how much your tax liability will be on any property purchase.

0% up to £250,000
5% above £250,000 and up to £925,000
10% above £925,000 and up to £1,500,000
12% above £1,500,000

The Changing Landscape and What it Means for You

On 31 March 2025, several changes are coming into effect:

The nil rate threshold, currently £250,000, will return to the previous level of £125,000.
The nil rate threshold for first-time buyers, currently £425,000, will return to the previous level of £300,000.
The maximum purchase price for which First-Time Buyers Relief can be claimed is currently £625,000, but it will return to the previous level of £500,000.

*The current stamp duty concessions for FTBs are the most significant advantage that will be lost. Let's consider a scenario: if you purchase a property today valued at £425,000 under the current rules, you won't pay any stamp duty. However, after 31 March 2025, the threshold for no stamp duty drops to £300,000. This means the same £425,000 property would incur a stamp duty charge of £6,250 (5% of the portion between £300,000 and £425,000). That's a substantial increase in upfront costs!

Taking Advantage of the Current Concessions

The good news is there's still time to act! By completing your property purchase before 1 April 2025, you can potentially save a substantial £6,250 thanks to the current FTB stamp duty concessions. However, if you delay, you risk losing this significant saving. Click to check out the wide range of properties ideal for first-time buyers under £425,000 in London & Kent, and start your journey to homeownership today.

Act Now: Time is Running Out

While the March 2025 deadline might seem far away, the reality is that the homebuying process takes time. Finding the right property, securing a mortgage, and navigating the legal aspects can easily take three to five months. If you're serious about buying your first home, starting your search now is crucial to give yourself enough time to take advantage of the current stamp duty savings.

Imagine the Savings: What £6,250 Could Buy You

The £6,250 you could save on stamp duty can make a significant difference in furnishing your new home. Consider these examples:

High-quality sofa: A comfortable and stylish sofa can be the centrepiece of your living room. You could easily find a quality sofa for around £1,500.
Bedroom furniture: A good night's sleep is essential. Invest in a comfortable bed, mattress, and bedside tables for a relaxing and rejuvenating space. You could find a decent set for around £2,000.
Essential appliances: A washing machine, dryer, fridge, and oven are crucial for any household. You could find good quality appliances for around £2,500.

At £6,000 in total, the above furnishings help make a house a home. And it will still give you extra money for a celebratory night out or drinks for your housewarming party!

What If You've Already Found Your Home?

If you've already found your dream home and had an offer accepted, it's important to be proactive to ensure a smooth and timely completion. Here are five top tips:

Stay in touch: Maintain regular communication with your estate agent and solicitor.
Complete paperwork: If any outstanding documents or paperwork are outstanding, complete them promptly to avoid delays.
Agree on a completion date: Work with your solicitor, the seller's solicitor and the seller to agree on a mutually acceptable completion date. Aim for a date before the 31 March deadline to maximise the current stamp duty savings.
Be prepared for potential delays: Historically, when stamp duty charges have changed, there's been a surge in property transactions. To avoid potential delays, aim for a completion date before the end of the year. Moving before Christmas or shortly into the New Year are aims worth investigating.
Arrange removal services: Once you have a confirmed completion date, contact a removal company to schedule your move. A reputable company can often accommodate changes in the moving date if necessary.

Following these steps can increase your chances of a successful and timely property purchase and secure substantial stamp duty savings.

Let Us Help You Find & Fund Your First Home

Our experienced team of sales consultants is here to guide you through the entire buying process, making your first home purchase an enjoyable experience. The team will help you find a home that fits your budget (this can be joint if purchasing with a partner) and then explain the legalities involved, giving you the confidence to step onto the property ladder.

Additionally, we offer access to independent mortgage advisors who will provide expert financial guidance in a comfortable and welcoming environment. Our advisers will guide you through your mortgage options and secure the best possible deal for your financial situation.

Don't miss out on this valuable opportunity! Contact your nearest Robinson Jackson Group office today, and let our team help you secure your dream home before the stamp duty changes come into effect. Remember, every day counts!

Please note: Details contained in this article are correct at the time of publication. It is advisable to check with our sales team for the latest stamp duty tax liabilities on property purchases.

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