With homebuyers facing an extra cost of thousands, the pressure is on to complete transactions before the new stamp duty rules come into effect next April.

Homebuyers and sellers in England and Northern Ireland need to act quickly to ensure their property sales are completed before the new stamp duty rules are introduced. The upcoming changes will result in higher bills for many buyers, and solicitors and estate agents are expected to be busier than ever in the new year as a result.

We’re likely to see a surge in demand, which will put pressure on estate agents, solicitors, and mortgage lenders alike. The new rules mean stamp duty will apply to properties over £125,000, down from £250,000, meaning a £266,000 property – the average UK sale price, according to Nationwide – will see a £2,500 increase in tax.

First-time buyers will also face a change, as they will need to pay stamp duty on homes worth over £300,000, compared to the current £425,000 threshold. This higher threshold will apply only to properties priced at £500,000 or less (instead of £625,000 as it stands).

In London, where the average house price sits at £524,000, first-time buyers will pay £11,250 more than they would under the current system, as they will now be subject to the same rules as other buyers once the property exceeds £500,000. I Am The Agent have already reported an increase in first-time buyers’ demand in the capital following the budget announcement.

These changes mark the end of the special measures introduced during Liz Truss’s 2022 mini-budget.

So, how can you make sure your sale goes through smoothly and quickly?

For Buyers:

1. Get Your Finances in Order Early
   Having a mortgage in principle (MIP) is crucial when making an offer, as it shows sellers you are ready to move quickly.  While it’s not a binding agreement, it will be useful in a competitive market.

2. Understand the Source of Your Funds
   If you're receiving money from family or selling investments to fund your purchase, make sure you're aware of the legal requirements to trace the source of these funds. Preparing documents like bank statements and payslips early can help prevent last-minute delays.

3. Order Searches Early
   Get your conveyancing searches done as soon as you receive the contracts from the seller. These searches will identify potential issues, such as planning proposals, flood risks, or water supply concerns. Fast-track searches can speed up the process by up to four weeks.

4. Book a Survey
   Booking a survey early can highlight any issues that may require negotiation or repairs, which could lead to a price reduction or other arrangements with the seller. Timely preparation is crucial, especially if you’re racing to complete before the new rules take effect.

5. Be Proceedable
   If you're not a cash buyer or chain-free, make sure everything is in place as early as possible. Put your own property on the market at a realistic price. Be pragmatic and avoid rushing into buying a property you don't truly love just to meet the deadline.

If You Need to Sell:

Price Your Property Competitively

Getting the right price from the start is essential. Overpricing your property and later reducing the price can be counterproductive, as properties with price reductions tend to take longer to sell and are statistically less likely to complete.

Choose the Right Estate Agent

A knowledgeable online estate agent like I Am The Agent can help you price your property accurately based on current market conditions. By using I Am The Agent it allows you, the property owner, to take control. Selling your property online has never been easier with IATA's property assistants saving you thousands along the way.

It's efficient and cost-effective to advertise a property online with our specialist dedicated sales packages, and is proven to be quicker than using traditional routes:

You can ensure clear communication with your solicitor, helping to maintain a smooth process. A seamless flow of information between all parties will help avoid unnecessary stress and delays, ensuring your sale progresses efficiently.

Prepare for the Legal Requirements

Just as you need an estate agent, you also need a solicitor who can do the same. Look for recommendations from friends and family, and ensure your solicitor specialises in conveyancing or property law.

I Am the Agent to Help You Through This
If you're looking to move swiftly and avoid the rising costs of stamp duty, I am the agent who can help guide you through the process. From securing the right property at the right price to managing your sale efficiently, I’ll ensure the process is smooth, keeping you ahead of the upcoming changes.

Feel free to get in touch for further assistance, and let's make sure you’re ahead of the game before stamp duty rises!