The group, including Lloyds Bank, Halifax and Bank of Scotland, has been working with conveyancers and mortgage brokers to prepare them for a rush of buyers aiming to complete before 1 April, when the stamp duty threshold increases.
LBG expects a 50% increase in completions compared to usual March activity and said while little could be done to speed the transaction process up, it had asked conveyancers to submit Certificates of Title as soon as possible. It has requested for this to be done no later than 25 March and said it would “do everything” to complete cases submitted after this deadline before 1 April, but said it could not offer a guarantee.
After 1 April, the nil-rate threshold for property purchases up to £250,000 will fall to £125,000, and a 2% rate will apply for purchases between that value and up to £250,000.
A 5% stamp duty rate will apply to the next £675,000, up to a value of £925,000.
LBG said this change would bring “thousands of homes into the stamp duty liability for the first time”.
Welcome to the future: how collaboration is driving the shift to digital home buying
Sponsored by Halifax Intermediaries
The tax-free threshold for first-time buyers will be lowered from £425,000 to £300,000, and the maximum property value eligible for this relief will fall from £625,000 to £500,000. The lender said this would mainly impact people buying in higher-priced areas like the South East and London.
The change means a first-time buyer purchasing a home worth £400,000 will have to pay £5,000 in stamp duty, while homemovers who would have previously paid no tax on properties between £125,000 and £250,000 will have to pay an additional £2,500.
|
Property or lease premium or transfer value |
SDLT rate Up to 31 March 2025 |
|
Up to £250,000 |
Zero |
|
The next £675,000 (the part from £250,001 to £925,000) |
5% |
|
The next £575,000 (the part from £925,001 to £1.5m) |
10% |
|
The remaining amount (the part above £1.5m) |
12% |
|
Property or lease premium or transfer value |
SDLT rate From 1 April |
|
Up to £125,000 |
Zero |
|
The next £125,000 (the part from £125,001 to £250,000) |
2% |
|
The next £675,000 (the part from £250,001 to £925,000) |
5% |
|
The next £575,000 (the part from £925,001 to £1.5m) |
10% |
|
The remaining amount (the part above £1.5m) |
12% |
Amanda Bryden, head of Halifax Intermediaries and Scottish Widows Bank at LBG, said: “With the new thresholds for stamp duty coming in just days, we are expecting a rush of customers trying to complete their purchase and avoid the extra cost. We’ve been working with mortgage brokers and solicitors to get ready for this, and we have seen evidence of many completing purchases early.
“We’ll do everything we can to get completions turned around before the stamp duty deadline if they come to us after 25 March, but there’s no guarantee. That’s why we are reminding conveyancers to get Certificates of Title to us no later than 25 March, and sooner if they can, to be sure to beat the deadline.”
