Contents:
- What is Stamp Duty in the UK and Why It Matters
- What’s Changing in 2025
- Stamp Duty for First-Time Buyers
- Stamp Duty for Other Buyers
- How These Changes Affect Homebuyers Across the UK
- How to Prepare Before April 2025
- Final Thoughts and Expert Advice
What is Stamp Duty in the UK and Why It Matters?
Stamp Duty Land Tax (SDLT) is a tax you pay when buying a property or land in England or Northern Ireland. The amount is based on the purchase price and your status—whether you’re a first-time buyer, buying an additional property, or moving up the property ladder.
Back in September 2022, the UK government introduced temporary Stamp Duty cuts to help homebuyers cope with rising costs. However, these reliefs are due to end on 31 March 2025. From 1 April 2025, the thresholds will revert to their previous (higher) levels, increasing costs for many buyers.
What’s Changing in 2025?
Stamp Duty in the UK for First-Time Buyers
Until 31 March 2025, first-time buyers benefit from the following rates:
- 0% on properties up to £425,000
- 5% on the portion between £425,001 and £625,000
From 1 April 2025, these thresholds will be reduced to:
- 0% on properties up to £300,000
- 5% on the portion between £300,001 and £500,000
If the property costs more than £500,000, the first-time buyer relief no longer applies, and standard rates will be charged.
Stamp Duty for All Other Buyers
Until 31 March 2025, standard SDLT rates are:
- 0% on the first £250,000
- 5% from £250,001 to £925,000
- 10% from £925,001 to £1.5 million
- 12% on anything over £1.5 million
From 1 April 2025, the rates return to:
- 0% up to £125,000
- 2% from £125,001 to £250,000
- 5% from £250,001 to £925,000
- 10% from £925,001 to £1.5 million
- 12% on the portion above £1.5 million
How These Changes Will Affect UK Homebuyers?
Whether you’re buying your first home, moving or investing in a second property, the 2025 Stamp Duty changes could mean paying thousands of pounds more in tax:
First-time buyers looking at homes priced between £300,000 and £425,000 will see higher SDLT charges starting April 2025.
All buyers purchasing properties between £125,001 and £250,000—a common price range—will no longer benefit from the current 0% rate and will face at least 2% tax.
If you’re planning to buy soon, it could make a significant difference to complete your purchase before 31 March 2025.
How to Prepare Before April 2025?
Here’s how you can stay ahead of the changes:
- Review your budget – Factor in future SDLT rates and plan accordingly. Use our Mortgage Affordability Calculator to find out how much mortgage you could get from the bank.
- Get a Mortgage Agreement in Principle (AIP) – This gives you a clear idea of your borrowing capacity.
- Speak to a mortgage broker – An experienced broker can guide you through your options and help secure the most favourable mortgage deals.
- Act early – If you’re ready to buy, start your search now to allow enough time for the legal process and to avoid the end-of-March rush.
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Final Thoughts and Expert Advice
The return to higher Stamp Duty in the UK rates in April 2025 is likely to increase the total cost of buying a home for many buyers across the UK. Acting before the deadline could save you thousands of pounds and reduce financial pressure during the homebuying process.
If you’re unsure where to start or need tailored guidance, don’t hesitate to speak with a qualified mortgage broker who can help you understand your options and navigate the changing market with confidence.
