Stamp duty hike looms large as buyers secure bigger discounts

Stamp duty hike looms large as buyers secure bigger discounts

0:06 AM, 6th December 2024, About a month ago

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The looming stamp duty increase in April 2025 is prompting buyers to secure bigger discounts on property purchases, Hamptons reveals.

As the deadline approaches, the market is seeing a surge in negotiated deals, particularly for homes priced below £1 million.

Hamptons’ data reveals that the average buyer who had an offer accepted in November 2024 negotiated a median discount of £5,000 off the asking price.

This significant increase is driven by buyers factoring in higher stamp duty costs and recent small mortgage rate rises.

How Budget changes are playing out

The firm’s head of research, Aneisha Beveridge, said: “A month on from the Budget, we’re starting to see how changes are playing out in the housing market.

“The number of sales being agreed is ending the year strongly as buyers look to secure a home ahead of the stamp duty rise next year.

“The chance of a sale agreed in December reaching completion before next April is now close to a coin flip.”

She added: “Sales that are part of long chains or where management companies are slow to respond to enquiries are now likely to incur higher stamp duty bills.

“Historically, only 37% of purchases agreed in January go on to complete by April of the same year.”

Still achieving strong prices

While buyers are securing bigger discounts, sellers are still achieving strong prices, particularly for higher-value properties.

The average seller in England and Wales secured 98.2% of their final asking price in November.

However, the impact of the stamp duty increase is more pronounced for first-time buyers and those purchasing homes below £1 million.

The lower threshold for first-time buyer relief means more buyers will face higher stamp duty bills.

Also, the £2,500 increase in stamp duty for movers has a more significant impact on the overall purchase price of lower-value homes.

Now buyers are racing against time to secure deals before the stamp duty increase takes effect and those who can complete before April can save thousands of pounds.


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