During the mini-budget announced today, the government announced permanent cuts to SDLT. The headline changes are an increase in the SDLT threshold where 0% is due from £125,000 to £250,000, an increase in the SDLT threshold where 0% is due for first-time buyers from £300,000 to £425,000 and an increase in the value of the property on which first time buyers relief can be claimed from £500,000 to £625,000.

As property lawyers we are always very nervous when we start hearing about changes to SDLT and the impact it may have on our clients. In the past few years as a result of changes to SDLT, we have had the unenviable task of informing clients that their property transactions are going to cost more than they thought or as we saw with the “SDLT holiday” during the pandemic, that there is a saving to be made but only if they manage to get their transaction done within a specified period of time. In both scenarios, it increased the stress levels of all concerned to an already stressful time in most peoples lives, which is moving homes. Today however, the SDLT change has resulted in us being able to send good news at last to clients. Not only a cost saving but a permanent one (subject to any future changes of course) so that there is no need to worry about missing any deadlines or panicking that the perfect home isn’t going to come along in time. 

As it is a permanent change the hope is that not only will it encourage and stimulate the property market but rather than it triggering a short lived, sharp injection of movement, there will be a gradual and steady increase over a prolonged period. When there are so many concerns and worries for property owners- inflation, cost of fuel and potentially unaffordable interest rates on mortgages, this change will be welcomed by all looking to buy new homes.