As the stamp duty deadline approaches, many property sellers are reducing asking prices to offset the upcoming cost increase and attract buyers. The largest reductions are occurring in the market segments most affected by the removal of current stamp duty relief thresholds.

GetAgent analyzed the property market to assess the proportion of homes with reduced asking prices across various price categories. Currently, homes up to £250,000 are exempt from stamp duty, but after 1st April, this threshold will drop to £125,000, with a 2% charge applied to properties priced between £125,001 and £250,000.

For properties priced above £250,000, the stamp duty rates remain unchanged—5% on the portion between £250,001 and £925,000, 10% between £925,001 and £1.5m, and 12% above £1.5m.

To help mitigate these upcoming costs, sellers of homes in the affected price ranges are already lowering their asking prices. According to GetAgent, 35.4% of homes priced up to £125,000 and 37.6% of those priced between £125,000 and £250,000 have seen price reductions, suggesting that sellers are adjusting their prices to stay below the new stamp duty thresholds or alleviate the additional 2% charge.

Homes priced between £250,001 and £950,000 have seen a 34.6% reduction in asking prices, with fewer reductions in higher-priced categories. The regions seeing the highest proportion of price reductions are the South East (40.5%), London (38.8%), East of England (35.7%), and South West (35.7%).

Colby Short, co-founder and CEO of GetAgent.co.uk, noted that while price reductions are common in any market, the stamp duty changes are prompting more sellers to adjust their expectations, particularly at key price points. He believes any market correction due to these changes will be relatively minor, as sellers remain motivated to complete transactions before the new rates take effect.

Source: Property Industry Eye edited by Perry Brown for readability.