Homeowners warned as rushing to sell could leave you out of pocket - how to get ready for stamp duty changes

But buyers should beware, as rushing to complete could leave you thousands of pounds of pocket.

This is because the deadline has sparked bidding wars and mortgage brokers have reported a jump in activity as buyers try to beat the deadline.

With prices already having been pushed up by the deadline, it is also expected that interest rates will fall later this year, so putting a move on hold could well end up saving you money.

So, it might be good advice to take it easy and, assuming rates will fall later in the year, put your move on hold and you may well save yourself some money, even taking the increase into account.

Stamp duty rates were cut in 2022 to stimulate the housing market post-Covid, so there was nothing to pay on properties worth up to £250,000 but that will come down to £125,000 in April.

The maximum amount of stamp duty movers will save after March 31 is estimated to be around £2,500, so rushing to sell before then and getting involved in a bidding war could prove to be a false economy.

First-time buyers might be looking at a much-increased bill after the deadline, though only if they are buying an expensive home.

The rush to market before the deadline is likely to be led by first-time buyers where the purchase price is within the tax-free bracket.

Still, some buyers will be tempted to up their offer but could still find themselves missing the deadline, as completions take around three months on average if there’s a chain so any delay could be costly.

That would leave buyers paying more for the property and more in stamp duty. As past history shows, we would expect an increase in prices as people move to beat the deadline and then a three to six-month period of lower activity.

If you do miss the deadline, you may be able to negotiate a lower price as the seller will probably be keen on not losing a buyer and, if you are in a chain, you could split the higher costs.

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The Bank of England base rate is expected to fall later this year and mortgage rates will reduce in turn.

To prepare for the change, I’d advise you to:

• Calculate how much tax you will need to pay based on the new rates
• Consider completing before April 1 if you’re a first-time buyer
• Consult a solicitor or tax advisor to navigate the changes effectively
• Ask if there’s a deal to cover the increased costs if you’re buying a newly-built home
• Ask if your house-builder has an “easy move” scheme to get you moving faster

Property expert Jonathan Rolande is the founder of House Buy Fast