It may cost more to buy a house in Gloucestershire from April 2025 thanks to changes in stamp duty, but according to county experts at WSP Solicitors it's still a great time to make a move in the property market.
SoGlos chats to head of residential property at WSP Solicitors, Lucy McCallum, to find out how the property market is looking and just how much choice there is out there.
What is changing with property tax and when are the changes starting?
Stamp duty land tax, known as ‘stamp duty’, rates were temporarily lowered in September 2022 in an attempt to boost the housing market and help first-time buyers get on the property ladder.
From Tuesday 1 April 2025, stamp duty is reverting back to the pre-September 2022 rates.
The nil rate band will drop from £250,000 to £125,000.
Stamp duty will be charged at two per cent between £125,001 and £250,000.
This will mean a further £2,500 will be payable on the purchase of a property over £250,000 at the standard rate.
For those purchasing a property as a second home or investment property, the rates will change to five per cent up to £125,000 and seven per cent for £125,001 to £250,000.
What do first-time buyers need to know about upcoming property tax changes?
These changes will mean first-time buyers can only claim relief on properties with a lower value with 'nil rate' falling from £425,000 to £300,000.
The upper limit for claiming the relief will fall from £625,000 to £500,000.
This means no first- time buyer relief can be claimed for any properties over £500,000 from Tuesday 1 April 2025.
How can WSP solicitors help in the journey?
WSP can provide expert support in buying and selling properties.
We can guide clients through the changes in stamp duty rates and through the conveyancing process with clarity and professionalism.
What do you anticipate will be impact of the property tax changes this year and into 2026?
The changes are likely to have an indirect effect on sellers.
We anticipate that buyers of any properties completing on or after Tuesday 1 April 2025 will likely want to take into account the change in stamp duty rates when offers are being made.
Indeed, if they miss the deadline to complete, they may wish to renegotiate the price before exchanging contracts.
This will then impact on properties up the chain with parties wishing to pass on the reduction in the purchase price.
Is 2025 a good year to buy a house?
Whilst the stamp duty rates are going up from Tuesday 1 April 2025, we believe 2025 is still a good year for buying a house.
The property market is busier with many more properties on the market than this time last year, giving buyers much more choice.
Mortgage rates are also fairly steady making borrowing more affordable.
