Prospect Homes, which is building at Mitton Grange in Whalley, Bridgemere in Burscough and Abbey Vale in Widnes, is reminding first time buyers about a change that could cost them thousands from March 2025.
Sam Palin, head of sales, at Prospect Homes said: “In September 2022, the Government announced a temporary increase to the thresholds above which Stamp Duty must be paid. However, this temporary relief will end on 31 March 2025 so any transaction completed after this date will be subject to higher Stamp Duty rates that will significantly impact first time buyers going into next year.”
Current stamp duty rates and exemptions on residential properties are*:
· First-time buyers purchasing a property below £425,000 pay no stamp duty on the property’s value
Non-first-time buyers pay:
· 0% for the first £250,000
· 5% on the portion from £250,001 to £925,000
· 10% from £925,001 to £1.5 million
· 12% on the portion over £1.5 million
Changes to the rates of relief include:
· First time buyers will pay no stamp duty on properties valued less than £300,000
Non-first-time buyers to pay:
· 0% for the first £125,000.
· A new 2% rate will be introduced for properties valued from £125,000 up to £250,000
· 5% on portion from £250,001 to £925,000
Sam continued: “For example, if you’re buying your first home costing £400,000 you would currently not pay any stamp duty at all; however from 31 March 2025 you’d owe £5,000** so now really is the time to get the process started to avoid having to pay this.”
For first-time buyers, the housebuilder can offer deposit contributions, cash back and lower mortgage rates. Customers can even tailor their own personalised deal as part of their "Wiggle Room" range of incentives.
To help customers who have a current home to sell, Prospect Homes has a variety of products to help get them moving.
One product is Part Exchange. This means that there’s no waiting around, no estate agency fees to pay and no buyers to negotiate with. Prospect Homes become the guaranteed buyer.
Sam added: “The Part Exchange process is simple. Customers fill out an application form and then our sales team arrange for their existing home to be valued. Once the house is valued, we will make an offer and then customers can make a reservation and move into their new home once the sale on their existing property has been completed.”
Prospect can manage the sale of an existing home via EasyMove. To find out more about the homes Prospect is building visit their website: www.prospecthomes.co.uk
* What Stamp Duty Changes Are Coming In 2025? - Sotheby's
** Stamp duty changes for first-time buyers in 2025 | Carter & May