The UK property market has entered a new phase as significant changes to Stamp Duty Land Tax (SDLT) came into effect on April 1st, 2025. These changes, announced as part of a government effort to rebalance housing affordability and revenue, directly impact first-time buyers and existing homeowners looking to move.

In this blog, we’ll break down the new rates, how they compare to previous thresholds, and what this means for buyers, sellers, and property professionals across England and Northern Ireland.

What Has Changed?

For Home Movers:

Previously, those purchasing a new home didn’t pay SDLT on the first £250,000 of their property’s value.

As of April 1st, 2025, this tax-free threshold has now been reduced to £125,000.

New SDLT rates for home movers:

Property Price Range	SDLT Rate
Up to £125,000	0%
£125,001 – £250,000	2%
£250,001 – £925,000	5%
£925,001 – £1.5m	10%
Over £1.5m	12%

For First-Time Buyers:

Previously, first-time buyers paid no SDLT on homes up to £425,000. That threshold is now lowered to £300,000 and there is now no stamp duty relief for first-time buyers purchasing a homes costing over £500,000.

Updated SDLT rates for first-time buyers:

Property Price Range	SDLT Rate
Up to £300,000	0%
£300,001 – £500,000	5%
Over £500,000	Standard rates

What Do These Changes Mean?

These changes will affect thousands of homebuyers and investors across the UK. The reduction in tax-free thresholds could:

Increase upfront costs for many buyers
Particularly impact first-time buyers in high-demand areas
Require more careful financial planning when budgeting for a purchase

How to Prepare

With these new rules in place, here are a few practical steps you can take:

Review your budget: If you’re house hunting, account for the increased SDLT costs.
Use SDLT calculators: Plenty of online tools help you estimate your new SDLT bill.
Consult with experts: Seek guidance from your mortgage broker, solicitor, or financial planner.
Act sooner than later: If you’re planning a move or property purchase, understanding the full cost breakdown is essential to avoid surprises.

Stamp Duty is one of the most significant costs when purchasing a home, and these updates reshape the affordability landscape for buyers. Staying informed and seeking advice early can help ensure a smoother, financially sound property journey.

If you’re unsure how these changes affect your buying power or investment plans, don’t hesitate to reach out to a qualified property or tax advisor.

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