25,000 first-time buyers set to miss stamp duty deadline and complete in April
- Over 25,000 first-time buyers in England who are currently going through the process of legally completing on a property purchase are predicted to miss the stamp duty deadline on March 31st, and complete in April
- Nearly 74,000 movers in England in total are set to miss the deadline and complete in April, with a collective £142 million in extra stamp duty payments on the line:
- For first-time buyers, £34 million in additional payments is on the line for those who complete in April
- The South East contains the most buyers set to just miss the deadline
- Most home-movers in England will face an additional charge of £2,500 from April 1st
- First-time buyers of properties between £500,001 and £625,000 face £11,250 in added costs
- Rightmove predicts a conveyancing log-jam as movers rush to complete before the deadline, with first-time buyers in London particularly affected
- Rightmove is calling for a short extension to the stamp duty deadline, to help the 74,000 home-movers who are currently set to miss it and complete in April
New analysis from the UK’s largest property website Rightmove reveals that an estimated 25,000 first-time buyers are predicted to miss the stamp duty deadline and complete in April instead.
The estimate is measured by homes with two-bedrooms or fewer, a typical home a first-time buyer would purchase, and priced up to £625,000, which is the current maximum stamp duty threshold to be considered a first-time buyer.
In total, an estimated nearly 74,000 home-movers in England are currently going through the legal completion process and will just miss the March 31st deadline, and complete in April. The total number of homes currently going through the legal completion process is much higher, however most were never likely to make the 31st March deadline.
The net effect for this group, who are set to complete just one month later, is a collective £142 million in additional stamp duty tax, compared with what they would have paid if they’d been able to complete in March. For first-time buyers, it is a total of £34 million extra in costs.
The analysis looked at the total number of homes currently going through the legal completion process, and the date they are likely to complete, based on factors including the area and type of property. The data is based on homes marked Sold Subject to Contract (SSTC) and Rightmove data on the average time to complete a home purchase, which is currently 163 days, or just over five months.
At a regional level, buyers in the South East are set to be most impacted, with the highest number of movers from the region set to only just miss out on the stamp duty deadline, and complete later in April. With the South East being the second highest-priced region for homes, this group is likely to face greater costs.
Due to the stamp duty thresholds, different types of buyers are set to be disproportionately affected by the upcoming changes.
An average home-mover in England will face an extra £2,500 in stamp duty costs from 1st April. However, while first-time buyers of homes priced at £300,000 or less will continue to pay no stamp duty, first-time buyers of homes priced between £500,001 and £625,000 are the most affected group of all, facing an extra £11,250 in costs.
| Property price | Current stamp duty charge | Stamp duty from 1st Apr 25 | Additional charges £ | Current stamp duty charge | Stamp duty from 1st Apr 25 | Additional charges £ |
| Non-first-time buyer | First-time buyer | |||||
| £125,000 | £0 | £0 | £0 | £0 | £0 | £0 |
| £250,000 | £0 | £2,500 | £2,500 | £0 | £0 | £0 |
| £425,000 | £8,750 | £11,250 | £2,500 | £0 | £6,250 | £6,250 |
| £500,000 | £12,500 | £15,000 | £2,500 | £3,750 | £10,000 | £6,250 |
| £625,000 | £18,750 | £21,250 | £2,500 | £10,000 | £21,250 | £11,250 |
| £750,000 | £25,000 | £27,500 | £2,500 | £25,000 | £27,500 | £2,500 |
| £925,000 | £33,750 | £36,250 | £2,500 | £33,750 | £36,250 | £2,500 |
| £1,000,000 | £41,250 | £43,750 | £2,500 | £41,250 | £43,750 | £2,500 |
With home-movers understandably eager to avoid unnecessary extra costs, Rightmove has predicted a conveyancing log-jam as 31st March fast approaches, and those going through the completion process try to get their purchase over the line.
Rightmove is calling for a short extension to the stamp duty deadline by the government, to help the 74,000 home-movers who will only just miss out on the deadline and end up paying more tax through no fault of their own. Particularly the 25,000 first-time buyers who will already be saving and stretching themselves as far as they can to get onto the property ladder.
Rightmove’s property market expert Colleen Babcock says, “We expect a rush to complete close to March 31st as first-time buyers and home-movers try to avoid paying extra in tax. Our numbers show how there is a relatively small, but disproportionately impacted group of first-time buyers who will be caught out by the changing thresholds, highlighting some disparities in the way the current system works. With 74,000 people only just set to miss the deadline, in part because of the extremely lengthy completion times in England, we think it would make sense to grant a short extension to the deadline and help these movers, rather than have them face higher charges when they complete later in April.”
| Region | % of homes for sale under £425,000 (stamp-duty free now for first-time buyers) | % of homes for sale under £300,000 (stamp-duty free for first-time buyers from 1st April) |
| North West | 77% | 59% |
| North East | 87% | 74% |
| West Midlands | 73% | 51% |
| London | 27% | 9% |
| South East | 49% | 28% |
| East of England | 59% | 35% |
| East Midlands | 77% | 56% |
| South West | 62% | 38% |
| Yorkshire and The Humber | 79% | 63% |
| England | 60% | 40% |
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