Stamp duty deadline could cause instability

CHANGES introduced by Kwasi Kwarteng in September saw the threshold for stamp duty double from £125,000 to £250,000 with no time limit attached.

Stamp duty is a tax paid when you buy a property and the figure is dependent on the property price at the time of purchase, and if you are a first-time buyer.

For first-time buyers the threshold was raised from £300,000 to £425,000 which was designed to ease the expense of purchasing a first home.

When Jeremy Hunt was appointed our new Chancellor of the Exchequer on October 14, he imposed a deadline to the threshold of March 2025 which many critics claim will cause instability to the housing market by creating a sense of urgency to meet this time frame, especially for first-time buyers who typically take up to five years to save up for a deposit.

Historically, the introduction of stamp duty deadlines created a rush of activity resulting in the stalling of movement once the deadline had passed and consequently causing a sudden catastrophic dip in the housing market.

It can take up to six months to buy and sell a property which means buyers will need to be well into their transaction by the end of summer 2024 to comfortably meet the Chancellor’s deadline.

Stamp duty will return to the normal rate of £125,000 or £300,000 for first-time buyers on March 31, 2025.