New stamp duty rules 'will cost buyers £3,900'
House buyers have been warned they face extra costs when buying their dream home. It follows a decision by the Government not to extend stamp duty relief beyond April next year.
Property experts say the decision will hit first-time buyers and leave them facing higher costs. They said those buying an average-priced property (£328,000) will face an extra £3,900 in up-front costs.
While many first-time buyers will purchase cheaper homes, they will still face added charges. Industry figures said they were disappointed stamp duty relief had not been extended beyond April 2025 and claimed it could make it harder for younger people to get onto the housing ladder.
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It comes as Chancellor Rachel Reeves also announced the stamp duty on second homes will increase by 2% to 5% from tomorrow. John Fraser-Tucker, head of mortgages at broker Mojo Mortgages, said: “The failure to extend the stamp duty relief beyond March 31, 2025 is incredibly disappointing for aspiring homeowners.
"With over a third (36%) of first-time buyers already seeking financial support from family, this additional cost could push homeownership even further out of reach for many. For an average-priced property, first-time buyers will now face an extra £3,901 in upfront costs. This change could force many to delay their dreams of homeownership.
"Even more so, this saving could have been money allocated towards furnishing their new home, covering solicitor fees, or building an emergency fund – a substantial boost for those taking their first step on the property ladder."