Stamp Duty

• From the 1^st April, the SDLT nil rate band threshold will fall from £250,000 to £125,000 (returning to 23 September 2022 rates) and SDLT will (as before that date) be chargeable at 2% (or where the higher rate on additional dwellings and/or non-UK resident surcharge applies, an additional 2%) on the difference.
• First time buyer’s relief will only be available where the purchase price of the property does not exceed £500,000 (down from the current cap of £625,000); and the current £425,000 nil rate band first-time buyer’s relief threshold will fall back to £300,000 (with the difference being chargeable to SDLT at 5%).

Leasehold and Freehold Reform Act 2024

• On 31^st January, the Leasehold and Freehold Reform Act 2024 (Commencement No 2 and Transitional Provision) Regulations 2025 (SI/2025/57) came into force. Previously, leaseholders had to own their property for two years (known as the “qualifying period”) before they could extend their lease or purchase the freehold of their property. This is no longer applicable. The change applies retrospectively, meaning that it is not limited to leases granted after 31 January 2025. Housing Minister Matthew Pennycook has stated that this is an initial step towards the overhaul of the leasehold system and that the Labour government will continue to implement the measures set out in the Leasehold and Reform Act 2024.
• There will be further consultations in 2025 regarding service charges and costs, valuation rates for enfranchisement and commonhold.

The Renters’ Rights Bill

• Regulated providers of social housing will be affected by the following changes:
• – The end of assured shorthold and fixed term tenancies
• – Tenancies over 7 years won’t be assured tenancies.
• There will be further changes to the grounds for possession.

It is clear that 2025 is going to be a busy year for legal practitioners and property stakeholders with the Government seemingly serious about initiating a series of changes, some of which will be quite radical.

Please contact our expert Property Lawyers for assistance with any Residential Conveyancing enquiries.

The post What changes are on the horizon in the property world? appeared first on Brindley Twist Tafft & James.