A new analysis by mortgage broker Mojo Mortgages reveals a game-changing opportunity for first-time buyers in London to save thousands on Stamp Duty before the April 1st deadline.

What changes are being made to Stamp Duty?

From April 1st, significant changes to Stamp Duty Land Tax (SDLT) will take effect, particularly impacting first-time buyers. The nil-rate threshold for first-time buyers will decrease from £425,000 to £300,000, with a 5% rate applying to properties priced between £300,001 and £500,000. Additionally, the maximum property value eligible for first-time buyer relief will drop from £625,000 to £500,000.

How the average First-Time Buyer can save £5,105

With the average London property price at £502,098, first-time buyers are set to face a Stamp Duty bill of £15,104 under the new regulations.

However, there’s a smart strategy to save money. By targeting properties priced just below £500,000—specifically by making an offer of £499,999 on homes that may be listed for more—buyers can avoid the higher tax rate that kicks in above this threshold.

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This approach can reduce their Stamp Duty bill to £9,999, resulting in immediate savings of £5,105.

John Fraser-Tucker, Head of Mortgages at Mojo Mortgages, explains: “This significant saving is due to how Stamp Duty is calculated in brackets. By staying just under the £500,000 threshold with an offer of £499,999, buyers avoid the higher rate that kicks in above this price point. It’s a simple yet effective strategy that can make a real difference in today’s challenging market.”

First-Time Buyers in other regions are unlikely to pay Stamp Duty

While London buyers face the biggest impact, the effects of these changes vary significantly across regions.

Fraser-Tucker notes, “In contrast to London, where the average property price is significantly higher, many other regions will not incur any Stamp Duty based on the average price for first-time buyers. This makes it easier for buyers in those areas to enter the market. While London presents unique challenges with higher costs, it also offers opportunities for those who act quickly.”

Mortgage Experts Share 7 Tips to Speed Up the Conveyancing Process Before the Stamp Duty Deadline

To help buyers navigate this complex landscape, Mojo Mortgages has shared seven expert tips to speed up the conveyancing process:

1. Choose trusted experts

The professionals you work with can make a big difference to your house-buying journey so choose your conveyancer, mortgage broker and estate agent wisely. They should all have a good reputation for efficiency and strong communication. It’s a good idea to ask about their current workload, too, to make sure your purchase can be prioritised if you’re working to a tight deadline.

2. Get your documents ready

When buying a property, you’ll need to provide your ID (such as your driving licence and passport), copies of your three most recent bank statements, recent payslips, proof of address and proof of funds when applying for a mortgage. Gather all these documents in advance so you have everything ready to share promptly.

3. Get a Mortgage in Principle (MIP)

“A Mortgage In Principle (MIP) is key,” says Fraser-Tucker. “It demonstrates your borrowing capacity and shows sellers you’re a serious buyer. It can significantly streamline your property search and strengthen your position when making offers.”

4. Provide detailed answers to your conveyancer quickly

When speaking with your conveyancer or solicitor, it’s tempting to give a partial answer if you’re not quite sure of the correct one, but this will only result in lengthy back-and-forth. Always try to answer your solicitor’s questions as thoroughly as you can, or ask them for further clarification if you’re not sure what they need from you.

5. Respond to requests quickly

Reply to any requests from solicitors, mortgage brokers or estate agents ASAP so you’re never the reason for any unnecessary delays. If you’re concerned about delays, feel free to proactively follow up to get an update – everyone understands how stressful buying a house can be!

6. Agree on timelines

Make sure everyone involved in your chain is aware of your expectations regarding completion dates, particularly if you’re working to a tight deadline. Everyone should be aligned and working towards the same target date.

7. Avoid a property chain if you can

Lengthy chains can not only delay property purchases, but there’s a greater risk of the chain collapsing which could set you back weeks or months. If possible, try to buy from a seller without an onward chain.

By understanding these changes and following expert advice, first-time buyers can navigate the new Stamp Duty landscape more effectively, potentially saving thousands of pounds in the process.