Home buyers are rushing to buy homes before a major stamp duty shake-up – and the Treasury is raking in millions as a result.
New figures reveal that stamp duty receipts surged by a staggering £40 million in January compared to last year, as homebuyers scrambled to beat the March 31 tax deadline.
According to HM Revenue and Customs (), stamp duty land tax (SDLT) receipts hit £848 million last month – a 4.95% increase on the same period in 2024.
Experts say the surge is being driven by panicked buyers trying to avoid paying thousands more in tax when the nil-rate threshold is slashed from £250,000 to £125,000 at the end of March.
This move will see stamp duty bills on an average-priced home more than double from £2,028 to £4,528.
Experts say the surge is being driven by panicked buyers (Image: Getty)
First-time buyers are also set to be hit hard, with their tax relief threshold dropping from £425,000 to £300,000, while second-home buyers have already been stung by an extra 5% surcharge introduced in the Chancellor’s October Budget.
Jonathan Stinton, head of relations at Coventry Building Society, told : “Buying a home is about to get a lot more expensive. Those in the middle of a purchase will be racing against time to complete before the deadline. If they miss it, they could be hit with thousands in extra costs.”
He added: “Some buyers may even try to renegotiate prices so sellers take the hit, while others might be forced to put their plans on hold altogether.”
Since the temporary tax breaks were introduced in September 2022, the Treasury has pocketed a jaw-dropping £31.3 billion in property taxes – and experts warn this figure will keep rising.
Property expert Jonathan Rolande said: “There has certainly been a noticeable rush to buy before the deadline, but that surge is now slowing. Government coffers have enjoyed a welcome boost, with the increased 5% surcharge on second homes bringing in a significant chunk.”
But he cautioned: “We’re at a tipping point. Tax levels are high, but any further hikes could have unintended negative consequences on the market.”
David Hollingworth of L&C Mortgages agreed, saying: “The rollback of more generous stamp duty bands has no doubt pushed some transactions forward. There’s now a frantic rush to get deals done before the March deadline. But for buyers only just entering the process – the reality is, they’re unlikely to make it in time.”