The cost of not buying your next home before March 2025

The cost of not buying your next home before March 2025 – Post-budget review and implications of stamp duty changes for buyers

By Lizzie Burt, Associate Director, Chinneck Shaw

It’s been a stormy month in the political arena across the pond, but even closer to home – in our Westminster backyard— the recent budget review showcased how quickly the tides can turn. Not least for those en-route to buying property. A road that, one could argue, has now turned into a race: to March 2025, when significant stamp duty changes will come into force.

Stamp Duty changes: what you need to know

In a crucial move announced in the recent budget, stamp duty is set to increase for many buyers, starting in March 2025. The revision to stamp duty (SDLT) will result in higher tax rates for those purchasing properties above certain price thresholds. As a result, anyone planning to buy a property in the near future should seriously consider acting before March to avoid these higher stamp duty costs.

This change is expected to have a widespread impact, with many buyers set to pay more than they would have under the current system. So, if you’re looking to purchase a home, whether it’s your first, second, or even your tenth, it’s vital to make your move before the new rates come into effect.

Given the looming stamp duty increase, now could be the perfect time to buy if you want to avoid the upcoming surge in costs. You might even find more competitive financing options available, making the window before March 2025 particularly attractive.

The question isn’t, “Is now a good time to buy?” It’s, “Can you afford not to buy now?”

The Southsea example

Let’s take a look at a property currently for sale in Southsea, a popular coastal town that’s been attracting homebuyers looking for charming character properties by the sea.

Consider this property:

£490,000 – Burgoyne Road, Southsea, PO5
If you were to buy this home before March 2025, you would benefit from the current stamp duty rates, potentially saving you thousands of pounds. If you are purchasing a house as your main residence and you are not a first-time buyer, under the current system, stamp duty on a £490,000 property would be approximately £12,000. However, after March 2025, the stamp duty rates will increase, which means that the SDLT liability will increase by £2,500 to £14,500.

For first time buyers, the impact is even greater as the threshold for their Zero Band Relief has been reduced from £425,000 to £300,00 and the maximum price for the property purchase has been reduced from £600,000 to £500,000.

For a first-time buyer, a £490,00 home purchased before the 31^st March will attract SDLT of £3,250 – on 1^st April the SDLT will rise to £9,500. A significant increase to those taking their first step on to the property ladder.

The financial implications of waiting

Let’s break down the difference in costs. If you buy now (before 31^st March 2025), you will pay the current stamp duty.  However, with the rate increase in March, all homes priced above £250,000, will incur an additional SDLT charge of £2,500. For, many buyers, that’s a large added expense that could impact their budget.

For the first time buyer, the reduction in the threshold banding will have a significant impact.  From 1^st April 2025, every first-time buyer purchasing a house at a price over £300,000 will need to budget for SDLT from 1^st April 2025.

A first-buyer looking at purchasing a property at £500,001 will see SDLT increase from £3,750.05 to £15,000.05

The increase in stamp duty will affect all buyers. Whether you’re a first-time buyer, a family upgrading to a larger home, or a downsizer looking for something smaller, the cost of waiting could be substantial.

Why you should buy now

As the clock ticks towards March 2025, the financial implications of these changes are becoming clearer. The current stamp duty rates offer significant savings, and delaying your purchase could result in paying considerably more for the same property. With competition likely to increase as we approach the deadline, now is the ideal time to make your move.

The cost of not acting could go beyond just higher taxes. You may face increased property prices, more competition for homes, and less favourable financing conditions. As we’ve seen in past property cycles, these factors can combine to push homeownership further out of reach.

In conclusion, with the stamp duty increases set to impact all buyers in March 2025, there is a clear financial incentive to act sooner rather than later. Whether you’re a first-time buyer or a seasoned property investor, the cost of waiting could be significant. If you’ve been considering buying a property, now might be the best time to ask yourself: Can you afford not to buy before March 2025?

Considering a move this Winter? 

At Chinneck Shaw we have strong buyer demand for properties for both sale and rent in and around Portsmouth, Southsea and surrounding areas.

If you are considering a move please feel free to contact us, either for an informal chat about the market and how we might help you with this or to book a market appraisal.

Or try our Instant Online Valuation tool.

To see the very latest homes coming to the market, click ‘Search’, this lists all of the very latest homes as they come to the market.

Lizzie Burt – Chinneck Shaw 

Chinneck Shaw Estate Agents and Letting Agents in Portsmouth and Southsea

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