Interest rates and Stamp duty changes

Interest rates and Stamp duty changes

The Bank of England has cut the bank base rate to 4.75%, for the second time this year. This mean interest rates are at their lowest level for more than a year. The base rate also affects the interest rates that lenders charge borrowers, so mortgages rates are predicted to see adjustment over the coming weeks.

New stamp duty relief thresholds were announced in the recent budget from 1 April 2025 to contribute to the government’s plan to raise £40bn for public spending. The announced changes will make buying a first property or moving up the property ladder more expensive for first-time buyers and home movers, however, there are savings if purchases are completed before this deadline. Potential second home buyers and investor landlords will also see stamp duty rises on second homes at every threshold. If the outcome is fewer homes to rent this could lead to an uplift in rents and yields for landlords even though rents are at a historically high level.

The discount for first time buyers from April 1st 2025, will be no SDLT up to £300,000, 5% SDLT on the portion from £300,001 to £500,000. If the price is over £500,000, you cannot claim the relief, so you will need to follow the rules for people who’ve bought a home before. The discount for property owning buyers from April 1st 2025, will be no SDLT up to £125,000, 2% SDLT on the portion from £125,001 to £250,000, 5% SDLT on the portion from £250,001 to £925,000, 10% SDLT on the portion from £925,000 to £1.5 million, 12% on the portion above £1.5 million. Stamp duty rates for second home owners from April 1 2025, will be 5% up to £125,000, 7% SDLT on the portion from £125,001 to £250,000, 10% SDLT on the portion from £250,001 to £925,000, 15% SDLT on the portion from £925,001 to £1.5 million, 17% SDLT on the portion above £1.5 million.

Our award-winning team look forward to helping you make your move stress-free.

Arins Property Services - selling & letting homes in, Lower Earley, Shinfield, Tilehurst, Winnersh, Reading and Wokingham since 2009.

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