More home buyers in England and Northern Ireland will be liable to pay the tax when stamp duty changes take effect from April 1.
Stamp duty changes set to take effect from April 1 will significantly impact home buyers in England and Northern Ireland. According to Zoopla, the proportion of first-time buyers required to pay stamp duty will double, rising from 21% to 42%. For existing homeowners purchasing a new main residence, liability will increase from 49% to 83%. The "nil rate" band for first-time buyers will reduce from £425,000 to £300,000, while others will see a reduction from £250,000 to £125,000. These changes are expected to add £1.1 billion annually to government revenue. Richard Donnell of Zoopla highlighted that while most first-time buyers will still avoid stamp duty, those in southern England, where housing costs are high, will be most affected. Simon Gerrard of Martyn Gerrard estate agents noted that 97% of sales in London will incur stamp duty from April, leading to a surge in buyer inquiries. Rightmove reported a 22% increase in average home prices since 2017, further complicating affordability for first-time buyers.
