Homebuyers across England are racing against time as the stamp duty holiday approaches its end on March 31.
Thousands face a potential £6,250 tax hike overnight if the sale of their home does not close in just weeks.
An estimated 74,000 buyers are expected to miss the deadline, collectively facing an extra £142million in tax bills.
First-time buyers are particularly vulnerable, with around 25,000 currently in the process of legally completing purchases but predicted to miss the April deadline.
First-time buyers and existing homeowners face increased costs from April 2025GETTYFrom April 1, 2025, the stamp duty threshold for first-time buyers will drop from £425,000 to £300,000. This means that anyone buying a home worth £425,000 or more will now have to pay £6,250 in stamp duty, instead of paying nothing.
David Roberts, Head of Property at HCB Solicitors Bristol, explains: “Time is running out for first-time buyers to save on stamp duty. With property prices already 1.9 per cent higher than last year, this change will only add to the financial burden of getting on the property ladder.”
For a first-time buyer purchasing a property worth between £500,001 and £625,000, their bill will jump to £11,250, according to Rightmove.
Paul Gorton, who featured in the 2024 series of The Traitors, and his partner Kate Waldron are among those racing against the clock. The couple are trying to buy their first home in Congleton, Cheshire.
Gorton told the BBC: “We’re on a knife edge, we’ve got weeks, otherwise it’s going to cost us a large chunk for no reason. This deadline looming over us.”
Additional home buyers also face a £2,500 tax hike overnight.
Currently, Britons pay no stamp duty on the first £250,000 of a property’s value, but from April 1, the threshold will drop to £125,000 with a new two per cent charge on amounts between £125,000 and £250,000.
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Property prices are already 1.9 per cent higher than last year
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The changes to stamp duty thresholds were announced by Chancellor Rachel Reeves in Labour’s Autumn Budget.
Property transactions currently take about 20 weeks to complete, meaning anyone hoping to beat the deadline should have started the process last October.
Roberts explained that stamp duty must be paid within 14 days of completion, and for buyers on tight budgets, this extra cost could significantly affect affordability
He said: “If you’re unsure how much you might owe, speak to your solicitor as soon as possible.”
The changes to stamp duty thresholds were announced by Chancellor Rachel Reeves in Labour’s Autumn Budget
PA
Rightmove’s property expert Colleen Babcock said: “With 74,000 people only just set to miss the deadline, in part because of the extremely lengthy completion times in England, we think it would make sense to grant a short extension.”
For those hoping to avoid this tax hike, the message is clear, “act fast,” Roberts added.
Delays in mortgage approvals, legal processes, and local authority searches mean that waiting too long could push buyers past the deadline, and leave them with a larger bill than expected.
He concluded: “Even if you started the process months ago, you must complete by 31st March to avoid the additional tax.”
Jonathan Rolande urged don’t be afraid to be a “difficult customer”. He told Britosn to be polite but firm if you feel you’re not being prioritised. “Even a few thousand pounds wasted is, in the grand scheme, not that much.”
- Get organised early – Babek Ismayil, founder of OneDome, advises buyers to “secure a mortgage agreement in principle, ensure deposit funds are accessible, and arrange surveys and searches as soon as possible” to prevent unnecessary delays.
- Sort your mortgage quickly – David Hollingworth, associate director at L&C Mortgages, recommends having “all required paperwork ready, including payslips, bank statements, and tax documents, to avoid delays and meet lender requirements”.
- Stay in constant contact – Joseph Lane, founder of Mortgage Lane, suggests “prioritising phone calls over emails when chasing solicitors and brokers, as verbal communication is more effective during busy periods”.
The legal completion stage typically takes two to five weeks after the exchange of contracts. Property experts have called on the Government to extend the deadline for those who had already begun the home-buying process.