Stamp Duty Changes in 2025: A Look at the Impact on Home Buyers

Stamp Duty Land Tax (SDLT) rates are set to change on April 1, 2025.

If you plan to buy a house after that date, these changes could make your home purchase more expensive by thousands of pounds. For first-time homebuyers, you could pay £6,000 or more for your purchase.

Let’s look at the current SDLT and what brought about this change in the tax rates.

About Stamp Duty Land Taxes

Stamp Duty Land Tax is a lump sum payment made by property or land buyers to the government after completion. This should be paid within 14 days of the completion date. The amount depends on the corresponding SDLT rates for the price you pay for the property or land.

In England, homebuyers must pay the tax if they buy a property that’s a freehold, leasehold, under a shared ownership scheme, or transferred real estate (land or property exchanged with payment). The tax rates vary by area, with Wales following different rates under the Land Transaction Tax..

Stamp duty taxes do not apply to all real estate purchases. If the transaction is below the threshold, there’s no need to pay stamp duty taxes. In September 2022, the Conservative Government temporarily lowered these thresholds to make homebuying more affordable, especially for first-time buyers. By March 31, 2025, these temporary changes will end.

On April 1, 2025, most thresholds will drop, meaning you could go from paying zero SDLT to paying several thousand pounds or more.

Stamp Duty Land Tax Changes Effective April 1, 2025

Stamp Duty payments differ based on factors such as residency status and buying purpose. So, for example, a first-time buyer will pay SDLT at a different rate to someone purchasing a second property.

Here’s a summary of the changes effective on April 1, 2025:

• Zero rate thresholds for main residences will drop from £250,000 to £125,000, with first-time homebuyer thresholds dropping from £425,000 to £300,000.
• First-Time Buyers Relief (lower stamp duty rate) will drop from £625,000 to £500,000.
• Those buying additional properties will pay 7% stamp duty for property values from £125,001 to £250,000, up from 5%.

Here are the details of these changes:

For Main Residences

In England, stamp duty rates for main residences will be as follows (based on freehold properties):

Property Selling Price	Current SDLT Rate	SDLT Rate on April 1, 2025
Up to £125,000	0%	0%
£125,001 to £250,000	0%	2%
£250,001 to £925,000	5%	5%
£925,001 to £1.5 million	10%	10%
More than £1.5 million	12%	12%

For First-Time Buyers

Stamp duty changes on April 1, 2025, will have a drastic effect on first-time homebuyers, making homeownership more unaffordable. Stamp duty rates for first-time buyers in England will be as follows:

Property Selling Price	Current SDLT Rate	SDLT Rate on April 1, 2025
Up to £300,000	0%	0%
£300,001 to £425,000	0%	5%
£425,001 to £500,000	5%	5%
£500,001 to £625,000	5%	5%

The First-Time Buyer’s Relief will change from £625,000 to £500,000 – so if you are a first-time buyer paying more than £500,000 for the property, then you are not entitled to the First-time Buyer rates and instead will pay the Standard Rate for Main Residences (as noted above).

If you’re buying a £400,000 property as a first-time buyer, you’re exempt from paying stamp duties until March 31, 2025. From April 1, 2025, you’ll pay £5,000 in stamp duties.

For Additional Home Purchases

If you buy an additional property in England (e.g. a second home or a buy to let), the following thresholds apply:

Property Selling Price	Current SDLT Rate	SDLT Rate on April 1, 2025
Up to £125,000	5%	5%
£125,001 to £250,000	5%	7%
£250,001 to £925,000	10%	10%
£925,001 to £1.5 million	15%	15%
More than £1.5 million	17%	17%

To get a better idea of your payments, use a Stamp Duty Land Tax Calculator.

Make the Homebuying Process Affordable and Stress-free

You can beat the stamp duty changes if you act now. Getting ahead of the changes can help you save thousands on the total homebuying cost.

With speed being a crucial factor in completing the transaction, it’ll benefit you to get assistance from a conveyancing firm. Licensed conveyancers have the expertise to streamline the homebuying process, ensuring everything is legally compliant and avoiding delays that could increase costs.

Muve specialises in quick and efficient conveyancing processes. Find out more about our services to complete your property purchase before April 2025.