Stamp Duty Changes in April 2025: What Homebuyers Need to Know

If you’re considering buying a home or investing in a buy-to-let property, the upcoming changes to Stamp Duty Land Tax (SDLT) in April 2025 could significantly impact your budget. At The Mortgage Company, we’re committed to keeping our clients informed so they can make well-timed and financially savvy decisions. Here’s what you need to know about the upcoming stamp duty changes and how they might affect your next property purchase.

What’s Changing?

From 1st April 2025, the government will be lowering the nil rate threshold for Stamp Duty, meaning more buyers will have to pay tax on their property purchases. The key changes include:

• The nil rate threshold will decrease from £250,000 to £125,000, meaning buyers will pay tax on any amount above £125,000.

• First-time buyers will see their nil rate threshold drop to £300,000 (down from £425,000), meaning they’ll have to pay tax if the property costs more than £300,00. This will make property purchases more expensive for many first-time buyers. 

• The maximum purchase price eligible for First-Time Buyer Relief will decrease from £625,000 to £500,000.

How Much Will You Pay?

The new SDLT rates from 1st April 2025 will be as follows:

Property Value Band	Stamp Duty Rate
Up to £125,000	0%
£125,001 - £250,000	2%
£250,001 - £925,000	5%
£925,001 - £1.5 million	10%
Above £1.5 million	12%

Example SDLT Costs After April 2025

• A property worth £200,000 will incur £1,500 in SDLT.

• A property worth £300,000 will incur £5,000 in SDLT.

• A property worth £500,000 will incur £15,000 in SDLT.

For those purchasing additional properties, the higher rate surcharge will increase from 3% to 5%.

First-Time Buyer SDLT Rates

For first-time buyers, the new rates from 1st April 2025 will be:

Property Value Band	Stamp Duty Rate
Up to £300,000	0%
£300,001 - £500,000	5%
Above £500,000	Standard rates apply

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Example: This means first-time buyers purchasing a £400,000 home will now pay £5,000 in SDLT from April 2025, whereas under the current rules, they wouldn’t pay anything. If the property price exceeds £500,000, first-time buyers will no longer be eligible for relief and will pay the standard SDLT rates.

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Who Will Be Affected the Most?

These changes will impact all buyers, but first-time buyers will likely feel the greatest effect. The reduction in the nil rate threshold means they will pay more tax, which could slow down their ability to get onto the property ladder.

First-time buyers are set to be affected the most by the 2025 stamp duty changes

Can You Avoid the Increase?

If you complete your purchase before 1st April 2025, you can take advantage of the current higher thresholds and potentially save thousands. Given that property transactions often take 12 to 16 weeks to complete, unless you’re already in the process you won’t meet the deadline.

For more information, visit the UK Government’s Stamp Duty Calculator to see how much tax you’ll pay on your purchase.

What Should You Do Next?

At The Mortgage Company, we’re here to help you navigate these changes. Whether you’re a first-time buyer, home mover, or property investor, our expert team can guide you through the mortgage process and help you make the most suitable financial decisions.

If you’d like to discuss how these changes affect you, get in touch with us today.