Spring Statement silent on imminent Stamp Duty hike facing home buyers
A leading Midlands legal firm has highlighted concerns that this week's Spring Statement failed to address the imminent return to pre-pandemic stamp duty rates, which could significantly impact the property market from April 1.
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Gary Davision, Managing Director at Davisons Law, which has offices in Wolverhampton, Cannock and Lichfield said: "Whilst the Chancellor's focus on planning reforms and housebuilding targets is welcome news for the property sector long-term, the Spring Statement was notably silent on the stamp duty threshold changes set to take effect next week. The uplifts in duty payable represent a significant extra expense for many buyers currently in the process of moving home."
From April 1, the nil-rate stamp duty threshold will revert from £250,000 to just £125,000, and first-time buyers will see their exemption threshold drop from £425,000 to £300,000. First-time buyers could in the worst scenario face an additional cost of up to £6,250.
Mr Davision added: "We're already seeing a surge in clients pushing to complete before the April deadline. For a typical home purchase of £350,000, movers will face an additional £2,500 in stamp duty costs if they complete after March 31st. For first-time buyers purchasing at the same price, the impact is even greater, with tax liability increasing from zero to £2,500 overnight."
Davisons Law, which has recently expanded to 19 offices across England and Wales, is concerned that the lack of extension to the temporary thresholds could slow the property market just as the government's wider housing initiatives begin to take effect.
Mr Davision said: "The Chancellor spoke extensively about planning reforms to deliver 1.3 million new homes over five years, but said nothing about the tax burden facing those looking to move in the immediate future. This disconnect between long-term housing ambitions and short-term property taxation could create a sluggish start to the property market this spring."
The firm, which ranks in the top three nationally for conveyancing matters, is advising clients currently in the property buying process to be aware of these impending changes and to discuss options with their conveyancers if completion dates are close to the deadline.
