Understanding Stamp Duty Changes: What You Need to Know

Upcoming Stamp Duty Deadlines

Stamp duty deadlines come and go. Here we are, faced with yet another one. Rachel Reeves, the Chancellor, announced changes to stamp duty in her Autumn budget. These changes will increase stamp duty for many buyers. As a result, mild panic often sets in among home movers and their legal practitioners. They have to deal with added stress and worry.

Each time we see a significant increase in activity on our site. This is because conveyancers often won't order searches before receiving a contract from the sellers. This situation can be quite challenging, especially with the looming deadlines. Buyers need to take control of their situation.

The clock is ticking. The changes will take effect on the 31st of March 2025.

What Do These Changes Mean for You?

So, what is it all about? The nil rate band will shrink from its current £250,000 to £125,000. This means that someone buying a relatively modest home costing £250,000 will face a stamp duty bill increase of £2,500. First-time buyers will also feel the impact. Their nil rate band will be cut from £425,000 to £300,000. Furthermore, the maximum value of the home they can use this band on will be reduced from £625,000 to £500,000.

The Impact on Transactions

With most transactions taking several months to complete, it is unlikely that anyone can start a purchase now and still benefit from the window of opportunity. Buyers must be careful not to wait too long to commission their searches. In some local authority areas, it may be difficult to keep up with the growing demand created by these changes.

If you are currently in the process of purchasing a home and hoping to meet the SDLT deadline, communicate with your conveyancer. If they have yet to order your searches, inform them that you would like to initiate the process yourself. You can do this by visiting our website.

Steps to Follow When Buying with a Mortgage

If you are buying with a mortgage, here's a step-by-step guide to follow:

1. Check the Lender Checker to ensure that your lender is receptive to a regulated search (most lenders are). You can find this tool here.

2. Check your return timescales here.

3. Get your order underway using the link below:

   Enhanced Search Pack.

4. Provide your conveyancer’s contact email address during ordering. This ensures both you and your conveyancer receive the reports as they are completed.

   
   

Understanding the Report Timescales

The Environmental Report will likely return within a couple of hours. The Drainage & Water report will take about 3-4 working days. The Local Search will complete in line with the timescales published on our site (linked above).

Special Cases and Custom Packs

If your lender requires an official (council-produced) Local Search, you will need a bespoke pack from us. Prices for these packs vary between local authorities. Feel free to ask us for a quote by emailing reports@propertysearchesdirect.co.uk.

Final Thoughts

Navigating stamp duty changes can be complex and stressful. It's essential to stay informed and proactive. By understanding the new regulations and their impact on your purchase, you can take the necessary steps to ensure a smooth transaction.

If you have any questions, please do not hesitate to contact us via email, web chat, or phone.