January 2025
Unless you’ve been living under a rock, I can’t imagine you haven’t already heard about the up-and-coming, important Stamp Duty Changes. Though if you’re wanting a bit of a refresh on these changes then this blog post is for you.
First of all, what is Stamp Duty?
Stamp Duty Land Tax (SDLT, or Stamp Duty) is a tax payable to HM Revenue and Customs (HMRC) when buying a property or land in England and Northern Ireland. The amount of SDLT liability will depend on several factors, including (but not limited to) whether a buyer is:
- a UK resident
- purchasing a property as an individual or company
- a first-time buyer [FTB]
- replacing a main residence
- purchasing additional property
In September 2022, the Government announced a temporary increase to the thresholds above which SDLT must be paid. The temporary increase is due to end on 31 March 2025, meaning that any transaction which completes thereafter will be subject to the increased rates of Stamp Duty.
Stamp Duty Rates (Home – Movers)
On a standard residential purchase of a freehold property, for an individual who is a UK resident and replacing a main residence, rates are as follows:
| Threshold | Rate (%) until 31 Mar | Rate (%) from 1 Apr |
| £0.00 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 % |
| £1.5 million+ | 12% | 12 % |
To simplify this, the maximum difference a Home Mover will face in Stamp Duty costs will be £2,500.
Stamp Duty Rates (First Time Buyers)
FTBs are the part of the market that will be affected the most, especially those buying in that mid-range bracket.
On a standard residential purchase of a freehold property, for an individual who is a UK resident and buying theirfirst main residence, rates are as follows:
| Threshold | Rate (%) until 31 Mar | Rate (%) from 1 Apr |
| £0.00 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% | Standard rates apply |
| £625,000 + | Standard rates apply | Standard rates apply |
For FTBs, this could mean that instead of paying no stamp duty on a purchase worth £425,000, they will soon pay £6,205.
A FTB buying a home worth £625,000 currently pays £10,000 in stamp duty. But from 1 April, that will rise to £21,250 – an increase of £11,250.
There is no doubt that this will send a rush of transactions through in the first quarter of 2025 as FTBs and Home Movers rush to beat these changes.
But how will this affect the market from 01st April onwards? Only time will tell. But I’m hopeful that activity will remain especially for the Home Mover market as interest rates (hopefully) continue to steadily reduce.
So what next?
If you’re thinking about buying a house, but you’re not sure where to start or you’d like discuss stamp duty changes, I’d love to hear from you. Drop me an email or head over to our Instagram for our latest news and tips.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Emily Mays / Director