Kevin Peachey, Cost of Living Correspondent, discusses the rush among home buyers scrambling to complete purchases before the end of the month to avoid paying thousands of pounds in extra stamp duty. Particularly concerning for first-time buyers facing affordability challenges, the looming changes to stamp duty thresholds in England and Northern Ireland set for April 1st have added pressure to an already difficult situation. One couple described the situation as being “in a race, and our prize is £11,000.”
The current stamp duty exemptions for homes valued under £250,000 and £425,000 for first-time buyers will come to an end at the beginning of April, reverting back to previous levels. For buyers like Paul Gorton and Kate Waldron, known for their appearance on the reality TV series The Traitors, the race to complete the purchase of their first home in Congleton, Cheshire, has added significant stress. Missing the deadline would mean an additional £6,500 cost despite already investing their savings into the deposit.
Estate agents like Karen Potter in Southport have around 37 clients at risk of missing the deadline, adding an extra layer of stress to an already challenging situation. The analysis conducted by the Skipton Group suggests that a higher percentage of first-time buyer homes will fall under the scope of stamp duty come April 1st. The urgency to complete purchases has led to some buyers backing out of deals as they struggle to meet the deadline.
In regions like the southeast of England where house prices are higher, the impact of changing stamp duty thresholds will be felt more acutely. Buyers like Jonah Kavanagh and Elle Van Petersen are racing against the clock to complete their purchase in Guildford to avoid an additional £11,000 in stamp duty. The uncertainty and anxiety surrounding the deadline have added to the stress of the situation, with no relief announced in the recent Budget. The government emphasizes its commitment to making homeownership accessible but acknowledges the challenges faced by buyers amid the changing thresholds
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