Stamp duty is changing

Find out when the new rates come into effect and how it could affect your house move.

In September 2022, the UK government introduced temporary changes to Stamp Duty Land Tax (SDLT) to give the housing market a boost and make buying a home more accessible for everyone.

These changes have played a key role in supporting the property market. By the end of 2024, house prices had risen by 3.3%, with the average property value reaching £297,166. This steady growth can be attributed to the SDLT relief, favourable mortgage rates, and strong buyer confidence.

However, these temporary measures are set to come to an end on 31st March 2025, with new SDLT rates coming into effect from 1st April 2025. These changes will impact all homebuyers, with first-time buyers facing some of the most significant adjustments to their thresholds.

If you’re planning to move, now could be the perfect time to take advantage of the current rates before the changes come into effect. Feel free to reach out to our team, we’re here to help guide you every step of the way.

How is stamp duty changing?

Effective 1st April 2025, several updates will be implemented:

• The standard nil-rate band, currently set at £250,000, will decrease to its earlier limit of £125,000.
• First-time buyers will see their nil-rate threshold reduced from £425,000 to the previous amount of £300,000.
• The highest property value eligible for First-Time Buyers’ Relief, which currently stands at £625,000, will revert to the former cap of £500,000.

Current stamp duty rates for main residences in England

Stamp duty rates for main residences in England from 1^st April 2025

Current first-time buyer stamp duty rates in England

Stamp duty rates for first time buyers in England from 1^st April 2025

* Figures based on residential purchase of freehold property, as a main residence for a UK resident.

Implication for homebuyers

All homebuyers will have to pay more in SDLT once the lower threshold becomes effective on April 1^st, 2025. For instance, if a first-time buyer purchases a £500,000 property after 31 March 2025, they’d need to pay £10,000 in SDLT. But if they bought it before that date, SDLT would be £3,750. Standard buyers are facing the same changes on a £500,000 property, which after 31^st March 2025 would incur a SDLT bill of £15,000, up from £12,500.

Can I beat the stamp duty changes?

Yes, by completing on your property purchase by 1^st Aril 20025 you will be able to benefit from the reduced rates temporarily introduced in September 2022. And remember, even if you don’t manage to beat the changes, the standard rates will still offer competitive terms, ensuring that your property purchase remains a valuable investment opportunity.

Start your search with Markden Homes today.