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Budget 2024: Stamp Duty Surcharge Increase for Second-Home Buyers  

2024 UK Budget: Impact of Stamp Duty Surcharge Increase on Second-Home Buyers and Conveyancers

Budget 2024: Stamp Duty Surcharge Increase for Second-Home Buyers  

The 2024 UK Budget outlined some big changes for the property sector. Most notably a significant Stamp Duty Land Tax (SDLT) surcharge increase for additional property purchases. Targeted at second-home buyers and buy-to-let investors, this change aims to ease housing market pressures by prioritising primary residence buyers. For conveyancers, property professionals, and buyers alike, the higher surcharge brings new considerations. Here’s a breakdown of the key changes, their potential impacts, and advice for navigating SDLT adjustments. 

Higher SDLT Surcharge for Second Homes and Buy-to-Let Properties 

  • Increased Surcharge Rate: The SDLT surcharge on additional homes rises from 3% to 4%, applied on top of existing SDLT rates. This change is intended to reduce demand for multiple properties, freeing up housing stock for primary residence buyers. 
  • Investor Impact: Buy-to-let and second-home investors will face increased costs, potentially affecting affordability for these purchases. Conveyancers should advise clients on this surcharge impact to help them fully evaluate transaction costs and implications for long-term investment strategies.

Prioritising First-Time and Primary Residence Buyers

  • Affordability Focus: The government’s goal is to make property ownership more accessible for primary residence buyers, especially first-time buyers. By increasing costs for investors, the Budget aims to reduce competition in key markets. 
  • Local Market Implications: This surcharge may dampen investor demand in popular areas, potentially creating more opportunities for residential buyers. Conveyancers should keep clients informed on SDLT changes to help them navigate local market adjustments effectively.

Unchanged SDLT Reliefs for First-Time Buyers and Corporates

  • First-Time Buyer Relief: SDLT relief thresholds for first-time buyers remain at £425,000, exempting them from additional SDLT charges and maintaining their purchasing advantage. 
  • Corporate and Bulk Purchases: Existing exemptions for corporate and bulk purchases continue, meaning that some developers will operate under the current SDLT framework. Conveyancers assisting corporate clients should be aware of SDLT exemptions for complex purchases. 

What Conveyancers and Property Professionals Should Know 

 Increased Client Advisory Needs: With the surcharge hike, conveyancers may see a rise in advisory needs from second-home buyers and investors, who might require a thorough breakdown of the new SDLT costs. 

Potential Market Caution: The additional cost may slow the second-home and buy-to-let markets, so property professionals could see a cautious shift in these transaction types as clients adjust to new SDLT expenses. 

 

Stay informed about the property landscape and how the 2024 Budget impacts your business.
Explore our 2025 Market Research Report for valuable insights into the residential market. 

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