Warrington conveyancing solicitor warns against falling foul of stamp duty changes

A Cheshire-based residential conveyancing specialist is urging first-time buyers to understand the costs involved when entering the property market.

First-time buyers will now start paying stamp duty on properties priced £300,000 or more when the changes come into effect from 31 March.

Stamp duty land tax is due if you buy a property or land over a certain price, with that figure lowered from £425,000 for those stepping foot on the ladder for the first time.

House prices in Warrington, the home of Watsons Solicitors, currently have an average cost of £281,664 according to Rightmove, whilst that figure stands at £312,287 when taking the whole of Cheshire into account.

Kailey Doyle, member of the conveyancing department at Watsons, said: “It’s correct for first-time buyers to be cautious with the threshold for stamp duty being lowered to £300,000.

“Those entering the market to purchase their first property are rightly careful when it comes to the costs involved, so remaining vigilant is important, especially with house prices rising in recent times.

“However, I am personally quoting the new stamp duty rate when we’ve had queries through, and it hasn’t appeared to put anyone off continuing their search.

“The crucial piece of advice we can offer is to live within your means, which applies for first-time buyers or those that have been on the property ladder for years.”

House buyers in England, not including first-time purchasers, will start paying stamp duty on properties over £125,000, instead of the current figure of £250,000, from 1 April.

The amount you owe depends on the cost of the property, whether it will be used for residential purposes, and if you own any others.

Current stamp duty rates are:

• £0-£250,000 (£425,000 for most first-time buyers): 0%
• £250,001-£925,000: 5%
• £925,001-£1.5m: 10%
• £1.5m+ = 12%

From 1 April, stamp duty rates will be:

• £0-£125,000 (£300,000 for most first-time buyers): 0%
• £125,001-£250,000: 2%
• £250,001-£925,000: 5%
• £925,001-£1.5m: 10%
• £1.5m+: 12%

In addition, if you already own a residential property worth £40,000 or more, and you buy another – or a part of one – you will pay an additional five per cent on top of the standard rates.

Kailey added: “It is important that the changes are noted by everyone buying property from the start of April, ensuring that they don’t get caught out by the new legislation.

“At Watsons, we are always happy to advise on the best possible way to move forward when looking to buy property.”

To speak to someone at Watsons Solicitors about buying, selling, or refinancing property, please contact enquiries@watsonssolicitors.com or call 01925 571 212.

Watsons Solicitors, which has been established for more than 60 years, specialises in family law, employment law, wills and probate, and conveyancing.

The team of experienced solicitors holds various accreditations and memberships of professional bodies relevant to their expertise, while the firm’s partners oversee all areas of work.