While some movers will be selling a property with no pressure to buy an onward home, many people will be buying and selling in tandem.
The selling part comes with its own fees – namely those paid to an agent and a conveyancer (read on to discover how to avoid paying both of those) but buying a property is about to get a whole lot more expensive for all but a very exceptional few.
The key date to note is 1st April 2025. This is when new stamp duty thresholds will take effect. Below are the rates buyers will pay before 1st April 2025 and what they’ll pay after:-
| Property value | SDLT rate |
|---|---|
| Up to £250,000 | Zero |
| The next £675,000 | 5% |
| The next £575,000 | 10% |
| The portion above £1.5 million | 12% |
| Property value | SDLT rate |
|---|---|
| Up to £125,000 | Zero |
| The next £125,000 | 2% |
| The next £675,000 | 5% |
| The next £575,000 | 10% |
| The portion above £1.5 million | 12% |
You’ll notice that before 1st April 2025, there is no 2% stamp duty threshold. This threshold is being re-introduced on 1st April 2025, with buyers paying 2% on the portion of a purchase worth between £125,001 to £250,000
It’s not always easy to see how much more you’ll pay when stamp duty is expressed as a percentage, so here’s an easy-to-understand example:
⇒ Purchase a property for £295,000 before 1st April 2025 and the stamp duty bill will be £2,250.
⇒ Purchase a property for £295,000 after 1st April 2025 and the stamp duty bill will be £4,750.
The latest analysis suggests it’s now taking an average of 179 days – almost six months – for a property sale to progress from the initial listing to completion. If you take the 1st December as a benchmark for coming to market, the average home sale would complete around 28th May 2025 – well into the new and more expensive stamp duty regime.
For movers who have not yet started the sales process with a High Street agent, the window of opportunity to receive a lower stamp duty bill has almost certainly closed. Of course, some agents will have luck on their side and the perfect chain but it’s rare.
Sadly, the answer is no. Data supplied by TwentyEA in late November 2024 revealed that of all the sales agents had in their pipeline, 25% were falling through and not reaching completion, representing more than 6,000 failed sales. With a High Street agent, there’s always the risk of a deal collapsing and having to start again with a new buyer or purchase. Those involved in a chain are at an increased risk of missing the 31st March 2025 deadline.
Even if you’re in a secure chain, time often works against sellers. To avoid the higher rate of stamp duty, all searches should be conducted, enquiries raised and answered, contracts exchanged and completion achieved before 31st March 2025. Sadly, even the best conveyancers can’t guarantee a completion time frame.
If a transaction hasn’t completed by 31st March 2025, there may be exemptions under a permission called ‘substantial performance’ but this will be an exception and not a rule.
Open Property Group can help if you haven’t come to market yet or if your chain has collapsed and you need to sell house fast. In an average of 42 days we will make a cash offer on your property, start the buying process, exchange contracts and achieve completion. This will give you the security you need to complete an onward purchase well before 1st April 2025.
The benefits of selling to us include:
Chain breaking service: Open Property Group will become your guaranteed buyer, rescuing your chain before 1st April 2025
Start a quick sale today and be sure of completing before stamp duty becomes more expensive. Contact us to get the ball rolling or start with a free online valuation here.
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