A Market in Motion

The UK housing market is buzzing with activity as first-time buyers race to complete their purchases before the Stamp Duty Land Tax (SDLT) rates revert on April 1st. With over 550,000 buyers currently in the pipeline — 25% more than this time last year — The Tax Faculty has seen a surge in property queries, highlighting the urgency for many to secure deals before the tax hike hits.

Why the Rush?

The temporary SDLT exemption on properties up to £250,000 is ending, meaning buyers will soon face an additional £6,000 to £10,000 bill if they don’t complete in time.

First-time buyers purchasing properties over £500,000 in areas like London and the South East will be the hardest hit, with stamp duty increases reaching up to £11,250.

Despite this impending change, the property market remains remarkably resilient. January 2025 recorded a 49% increase in mortgage applications compared to January 2024. This surge is a testament to buyer confidence, even in a climate of fluctuating interest rates and economic uncertainty.

Sellers are responding too—property listings are at a 10-year high, and price growth remains moderate at just 0.5% from January 2024. This means buyers still have strong negotiating power to offset the extra SDLT costs.

Housing Market Boom Amid Tax Hike Pressure

Experts predict that despite the deadline, the market won’t experience a major slowdown. Interest rates are expected to drop further throughout 2025, with potential Bank of England base rate cuts bringing mortgage rates down.

This could fuel continued demand even after the SDLT deadline passes.

Will April 1st Slow the Market?

With time running out, here’s what first-time buyers can do to maximise their savings before April 1st:

• Speed Up Conveyancing – Work with efficient solicitors and respond promptly to all documentation requests.

• Negotiate Smartly – Many sellers are willing to adjust their prices to compensate for the upcoming tax hike.

• Secure Mortgage Offers Fast – With high demand, delays are inevitable, so act quickly to lock in a good deal.

What Should Buyers Do Now?

The April 1st SDLT deadline is a pivotal moment, but it’s clear that buyers are determined to push through. If you’re in the market, don’t hesitate—time is money, and in this case, it could be a £10,000 saving!

Need expert guidance? Our team is handling an unprecedented volume of property queries—contact us today to help you navigate your home-buying journey smoothly before the deadline.

Final Thoughts

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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