The Intermediary – February 2025 - Flipbook - Page 33
year," says Ross Turrell, commercial director of
CHL Mortgages, citing Zoopla data.
But beyond this surge, he argues, the overall
impact will be less dramatic than some fear.
He adds: “The profound impact some
STAMP DUTY
In Numbers
commentators predict is unlikely.
“We do not expect a drop in market activity,
though a slight softening in prices may emerge
in the medium to long term.”
If history is any indicator, Turrell expects
buyers to adjust their budgets in a bid to absorb
the additional cost, suggesting that sellers may
find themselves tempering their expectations.
◆ Total SDLT transactions in Q4 2024
were 11% higher than in the previous
quarter, and 19% higher than the
same period in 2023
“As has happened when Stamp Duty has risen
in the past, buyers – from first-timers to portfolio
landlords – will simply adjust their budgets to
accommodate the additional SDLT.
“As a result, we may see asking prices dip
slightly as the market corrects.”
◆ Residential property transactions in
Q4 2024 were 9% higher than in the
previous quarter, and 20% higher
than in Q4 2023
Affordable alternatives
Whatever the wider market impacts, with the
Stamp Duty deadline fast approaching, first-time
buyers are staring down an affordability crunch.
Once the threshold drops in April 2025, those
struggling to gather the extra funds will need to
explore alternative routes to homeownership –
because, realistically, waiting for a sudden market
◆ Total SDLT receipts in Q4 2024 were
23% higher than in the previous
quarter, and 31% higher than
Q4 2023
correction is not a reliable strategy.
Fortunately, there are still some options
available, even if none of them are a perfect
substitute for much-needed Stamp Duty relief.
Shared Ownership, where buyers purchase a
portion of a property – typically between 25%
and 75% – and pay rent on the remaining share,
is likely to gain traction.
While it lowers the initial financial burden,
buyers should be mindful that "staircasing" – the
process of gradually increasing ownership – can
come with additional costs, including higher
◆ Residential property receipts in Q4
2024 were 16% higher than in the
previous quarter, and 27% higher
than Q4 2023
◆ FTB Relief claims increased by 10%
between Q3 2024 and Q4 2024, from
37,600 to 41,500. Compared to Q4
property valuations and legal fees.
For those saving up, the Government’s First
Homes scheme offers discounts of 30% to 50%
2023 there was an increase of 34%
on eligible new-build properties, aimed at local
first-time buyers and key workers.
However, Short cautions: “These schemes are
certainly worth exploring, but it’s vital to read the
details carefully, because there is concern among
some about how affordable they actually are,
especially over a long period of time.”
This is because future resale prices are also
capped, meaning potential gains are limited.
◆ £202m in Stamp Duty was relieved
in Q4 2024, which represents
an increase of 10% compared to
Q3 2024 and an increase of 38%
compared to Q4 2023
Mortgage options are also evolving to cater for
struggling first-time buyers.
Leeds Building Society recently introduced its
Income Plus mortgage, allowing applicants with
a minimum household income of
£40,000 to borrow up to 5.5-times
p
Source: HMRC Quarterly Stamp Duty
Land Tax (SDLT) statistics
