Why Selling Your Home Before March 31 Could Save You (and Your Buyer) Thousands in Stamp Duty
If you’re considering selling your home, you may be tempted to wait until the New Year or even spring, thinking it might be a better time to find the right buyer. However, recent changes to stamp duty coming into effect on March 31 could significantly impact the cost of buying a home—making now an ideal time to list your property.
From March 31, 2025, stamp duty rates are set to revert to their 2022 levels, meaning that 93% of homes will again be subject to stamp duty. Here’s what that means for home sellers like you, and why waiting could put you and potential buyers at a disadvantage.
What’s Changing with Stamp Duty?
The current stamp duty relief, introduced as part of the previous government’s measures to stimulate the housing market, has allowed many buyers to save thousands on their purchases. Right now, many buyers are either exempt from stamp duty altogether or benefit from reduced rates, especially for homes priced under £250,000 and for first-time buyers purchasing properties under £425,000.
However, these thresholds are set to change back to their 2022 levels on March 31, 2025, when:
- The stamp duty exemption threshold will decrease from £250,000 to £125,000 for general buyers, meaning that any property over £125,000 will incur stamp duty.
- The exemption for first-time buyers will drop from £425,000 to £300,000, impacting those looking to purchase properties in the mid to upper range.
With these changes, stamp duty will once again apply to 93% of properties on the market, compared to the current 1 in 10 properties that incur the tax.
What Does This Mean for Buyers—and Sellers?
For buyers, these changes mean that purchasing a home after March 31 will likely be more expensive. For instance:
- A first-time buyer purchasing an average-priced home in the UK (around £370,000) will face a stamp duty bill of around £3,538 after March, whereas they currently pay nothing.
- For general buyers, the additional cost could add up to £2,500 or more, depending on the property’s value.
This added cost could lead many buyers to pause their home search or focus on properties that won’t strain their budgets. With an extra tax bill on the horizon, buyers may be motivated to close deals before March to save on stamp duty—which can work to your advantage if you’re prepared to list now.
Click here to work out what your stamp duty might be before and after March 2025.
Why Listing Now Could Give You a Market Edge..
By listing your property now, you can attract buyers eager to avoid the impending tax increase. Here’s why acting sooner rather than later could put you ahead in the market:
- Increased Buyer Interest: Buyers looking to save on stamp duty have ramped up their searches already, aiming to move in before the end of March. Listing now means you can capture this heightened interest.
- Competitive Advantage: If fewer properties are on the market over the holiday season or early in the New Year, your property stands out. Buyers ready to avoid higher stamp duty costs may be less inclined to negotiate, knowing that waiting could cost them more.
- Reduced Time on the Market: With buyers feeling a sense of urgency, properties listed now are more likely to sell quickly, minimizing the time and effort you’ll spend on marketing and showings.
How Waiting Could Cost You
If you wait until the new year to advertise your home, you may face several disadvantages:
- Reduced Buyer Pool: With stamp duty fees back in place, some buyers may hold off on purchasing until they’ve saved more, decreasing demand for homes in certain price ranges.
- Increased Price Sensitivity: Buyers may feel less flexible on price after accounting for the added tax, which could lead to more negotiations and potentially lower offers.
- Longer Selling Times: With more properties entering the market in spring, you could face greater competition, leading to longer selling times and more pressure to lower your asking price.
Make the Most of the Current Market Conditions
Advertising your home now allows you to take advantage of the current buyer-friendly stamp duty relief before it’s gone. You can attract motivated buyers who want to avoid paying extra tax, and you may even benefit from faster sales and stronger offers. By waiting until after the changes take effect, you risk limiting your buyer pool and possibly facing downward pressure on offers as buyers factor in higher costs.
The end of the year is often seen as a slower time in real estate, but with these upcoming changes, motivated buyers are actively searching for properties they can complete on before the end of March. By acting now, you can turn this timing into a powerful advantage.
Ready to Sell?
If you’re ready to explore your options, reach out to Love Property, we are an experienced estate agent who can guide you through the process, ensuring your home is positioned to attract buyers looking to maximise their savings. Let’s make the most of the current market conditions and help you secure a smooth, successful sale before the upcoming changes take effect.
Other options?
Love property values close relationships with buyers and sellers, this means we have a large database of motivated home movers, what this means for you is that we can offer your home for sale away from the perusing unintentional window shoppers who have no interest in actually moving. You can try a marketing price to see how buyers find it and we will help you navigate what has become an extended and stressful process. Call our sales team today for a chat on 01748 834373