A big surge in completions ahead of new Stamp Duty rules on April 1 is expected, according to Lloyds Banking Group, the country’s largest mortgage lender.
Lloyds Banking Group expects to see completions for March 50% higher than usual. The group says it’s been working with conveyancers and mortgage brokers to ensure they are ready for the rush of buyers trying to beat the deadline. The lender has guaranteed to process all completions submitted at least a week before the deadline.
From April 1, 2025, significant changes to the Stamp Duty Land Tax (SDLT) will affect first-time buyers and home movers. Perhaps the biggest change is the reduction of the nil-rate threshold from £250,000 to £125,000. This means that buyers will now pay a 2% tax on the part of the property value between £125,001 and £250,000, bringing thousands of homes into the Stamp Duty liability for the first time.
| Property or lease premium or transfer value | SDLT rate Up to 31/3/25 |
| 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 £1.5 million) | 10% |
| The remaining amount (the part above £1.5 million) | 12% |
| Property or lease premium or transfer value | SDLT rate From 1st 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 £1.5 million) | 10% |
| The remaining amount (the part above £1.5 million) | 12% |
For first-time buyers, the tax-free threshold is being cut from £425,000 to £300,000, plus the maximum property value eligible for first-time buyer relief will drop from £625,000 to £500,000. This change will particularly affect those looking buy in areas like the South East and London, where property prices for first homes often exceed these thresholds.
Homebuyers completing their purchases after the April 1 deadline will face higher SDLT costs. For example, a first-time buyer purchasing a property for £400,000 will have to pay £5,000 in SDLT under the new rules. Similarly, home movers buying properties priced between £125,000 and £250,000, who previously paid no SDLT, will now have to find up to £2,500 extra.
Homebuyers need to complete their purchase before April 1 to avoid the extra tax, but at this stage there is little they can do to make the process any faster. To help them, Lloyds Banking Group has been talking to conveyancers and mortgage brokers to ensure they can process mortgage completions in plenty of time. The lender has asked conveyancers submit Certificates of Title as soon as possible, and no later than March 25 to beat the Stamp Duty deadline. The lender will do everything to complete cases submitted after this before April 1 but advises it cannot offer a guarantee.
Amanda Bryden, Head of Halifax Intermediaries & Scottish Widows Bank at Lloyds Banking Group, says: “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 March 25, but there’s no guarantee. That’s why we are reminding conveyancers to get Certificates of Title to us no later than the March 25, and sooner if they can, to be sure to beat the deadline.”
