How could recent price rises help to offset the stamp duty increase?
The property market has a way of taking care of itself.
The recent average, price increases of 1.7%* in January, perhaps driven by demand to beat the stamp duty rush, could help to mitigate some of the costs associated with stamp duty (SDLT). However, this will also largely depend on how well you can negotiate a good selling price and have a good strategy when making an offer.
Strong values could help with stamp duty rises
For single-owned residential properties, stamp duty has various thresholds, meaning its rise by 2% from 0% on properties is from the portion priced between £125,001 and £250,000.** The increase in value of your property could be more than this amount, which is £2500. However, you pay stamp duty after the purchase of a property, so a lot depends on the finer details of negotiating your offer. If your home’s value is more than £250,000, those thresholds remain the same for a single property.
Understand the full stamp duty rates
It’s important to note that the existing thresholds for homes worth more than £250,000 remain unchanged for single-property purchases. At 5% on the portion from £250,001 to £925,000.** Beyond this, the next £575,000 (from £925,001 to £1.5 million) is taxed at 10%, and any amount above £1.5 million is taxed at 12%.**
First-time buyers
Until 31 March 2025, first-time buyers benefit from a stamp duty (SDLT) discount, paying no SDLT on properties up to £425,000 and 5% on the portion from £425,001 to £625,000.** However, if the property price exceeds £625,000, the relief does not apply, and standard rates are used. From 1 April 2025, the discount threshold will be reduced, with no SDLT on properties up to £300,000 and 5% on the portion from £300,001 to £500,000.** If the price exceeds £500,000, buyers must follow the standard stamp duty rules applicable to those purchasing a home for the second time or beyond.**
Maximise your home’s value
With demand high and prices rising, now is a great time to assess your property’s true worth. A professional valuation could reveal a larger-than-expected increase in your home’s value, putting you in a stronger position when selling and helping to counteract stamp duty costs. Making the most of your home’s value can often be about the little things as well as staging and presenting it professionally.
Market momentum is building
As we move further into the year, market confidence continues to grow. Lower mortgage rates, high demand, and rising home values are all contributing to a buoyant property landscape. Whether you’re looking to upsize, downsize, or relocate, conditions remain favourable for making your next move.
The power of good negotiation
A well-negotiated offer can make all the difference when securing your next home, and having an experienced agent by your side can help you achieve the best outcome. A good agent will understand market conditions, assess the seller’s position, and guide you on making a strong yet strategic offer. Whether it’s negotiating on price, securing favourable terms, or ensuring you stand out in a competitive market, expert advice can put you in the best position to succeed.
Contact us today for a free valuation and expert advice
Rightmove*
GOV.UK**
This article was originally published by BriefYourMarket and is reproduced here with their permission.
For more company news and insights from Pygott & Crone, click here
Part of a network of agents
We work with other trusted estate agents across the nation
Latest news
Celebrating Homewise's Award-Winning Service
We are delighted to share the exciting news that our partner Homewise has received the prestigious Feefo Gold Trusted Service Award! This award recognises Homewise's dedication to providing exceptional, high-quality service to their valued customers and their families.
Five good reasons for moving in February 2025
This February signals fresh beginnings and for home movers this presents an excellent opportunity to take action.
How could recent price rises help to offset the stamp duty increase?
The property market has a way of taking care of itself.
The 2025 mortgage checklist: What to prepare
With the property market gaining momentum in February 2025, and mortgage deals improving, many buyers are taking steps towards securing their dream home.
