Stamp Duty Changes 2025: What Homebuyers Need to Know

What Are the Stamp Duty Changes?

Back in September 2022, the UK government introduced temporary stamp duty relief to help buyers get onto the property ladder and support the housing market. However, these changes to stamp duty will come to an end on 31st March 2025, meaning higher tax costs for many buyers.

Here’s what’s changing:

• The nil rate threshold (the amount you can spend before paying any Stamp Duty) will drop from £250,000 back to £125,000.
• For first-time buyers, the nil rate threshold will reduce from £425,000 to £300,000.
• The maximum property value eligible for First-Time Buyer Relief will shrink from £625,000 to £500,000.
• Stamp Duty rates on second homes and buy-to-let properties will also rise in the lower bands.

If you're wondering when does stamp duty change, the key date to keep in mind is 1st April 2025.

How Will Home Movers Be Affected?

It's not just first-time buyers who will feel the impact; home movers will also see increased costs. Anyone buying a home for over £125,000 will also pay more Stamp Duty from April 2025. The nil rate threshold will halve, meaning buyers will start paying tax much sooner.

For example:

• Now: A home mover purchasing a £350,000 home pays £5,000 Stamp Duty.
• From April 2025: The same buyer would pay £7,500 Stamp Duty.

This means buyers who purchase after March 2025 will face an additional £2,500 in upfront costs.

What About Second Homes & Buy-to-Let Properties?

The new stamp duty rules will also increase costs for landlords and second-home buyers. From April 2025, properties in the lower price brackets will face higher tax rates: