Time running out for Portsmouth first time buyers to save on stamp duty

These changes will see the end of temporary reliefs introduced in September 2022, potentially increasing costs by thousands of pounds.

Under the current SDLT rules in England and Northern Ireland, first-time buyers can benefit from tax relief on homes valued up to £625,000.

However, from April, this threshold will revert to £500,000, and the initial tax-free allowance will drop from £425,000 to £300,000. For homes priced above £300,000, this could mean an increase in SDLT payable of up to £11,250.

The impact will be particularly acute for buyers already navigating a challenging housing market. With the average home purchase in the UK taking between 12 and 16 weeks to complete, there is a narrow window to take advantage of the existing rates.

Purchasers risk missing out entirely if legal completion occurs even one day after the 31 March deadline.

Tom Lacey, Southampton-based Tax Director and leading SDLT specialist at UK Top 10 business advisory firm Azets, said: “The upcoming changes to SDLT are a financial blow to many first-time buyers, who are already facing affordability pressures.

“Time is of the essence, and we urge those planning to buy to seek advice as soon as possible to navigate this transition effectively.

“Unlike previous SDLT adjustments, no ‘grandfathering’ provisions will apply to transactions signed before the deadline but completed afterward.

“This makes it crucial for prospective buyers to manage timelines carefully, ensuring legal completion before the cut-off date.

“Buyers to explore all available options to expedite the purchase process, though caution is needed with alternative approaches, such as triggering SDLT liabilities early under ‘substantial performance’ rules.

“I advise buyers to seek specialist advice or risk missing out on significant savings. Acting now can help avoid unnecessary costs and stress, with the 31 March deadline looming.”