Stamp Duty Threshold Changes from 1st April 2025: What You Need to Know

The UK property market is set to see significant changes from 1^st April 2025, as the government revises the stamp duty thresholds. These changes could affect buyers across the market, from first-time homeowners to seasoned property investors. Here’s a breakdown of what to expect and how it might impact you.

What Is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax paid on property purchases in England and Northern Ireland. The amount depends on the price of the property and the buyer’s circumstances, such as whether they are a first-time buyer or purchasing an additional property.

Key Changes to the Stamp Duty Thresholds

From 1^st April 2025, the Stamp Duty Land Tax (SDLT) thresholds will undergo significant changes, including adjustments specifically affecting first-time buyers:

Lower Tax-Free Threshold

Currently, first-time buyers benefit from Stamp Duty relief on properties up to £425,000 for purchases under £625,000. This will decrease to £300,000 for purchases under £500,000.

Examples:

• For a property priced at £350,000 before 1^st April 2025, you will pay no SDLT. From 1^st April 2025, the SDLT on this home will increase to £2,500.
• For a property priced at £520,000 before 1^st April 2025, you will pay just £4,750 in SDLT. From 1^st April 2025, the SDLT on this home will increase to £16,000.

There are savings of up to £11,250 if you move before 1^st April 2025!

General Threshold Adjustments

For all buyers, the overall tax-free threshold is being lowered from £250,000 to £200,000, which means even more homes will now incur SDLT.

Do I have time to benefit from the lower Stamp Duty threshold?

Yes!

"Rightmove said that, across Britain, it currently takes five months on average to complete a property transaction after agreeing a sale, so first-time buyers would need to be particularly swift to complete purchases before the 1^st April stamp duty changes."

Buying a second-hand property often involves being part of a chain. This can significantly slow down the process, risking the chance of not completing ahead of the Stamp Duty changes from 1^st April 2025.

If you’re a first time buyer, buying a new-build means you’ll be ‘chain free’, so you’re not waiting for a seller to find another home to move to before you can move in. There are also many other benefits to buying new which you can read about here.

Buying a new build home on average takes around 8 weeks to complete, however, with Fairview New Homes, you could move in as little as 6 weeks. Fairview streamlines the home-buying journey with efficient processes, dedicated support teams, and ready-to-move-in properties, ensuring a faster and hassle-free transition into your new home. This means you can start enjoying your modern, high-quality, energy efficient living space sooner than expected.

Preparing for the Changes

We have a number of developments with properties ready to move into before 1^st April 2025, saving you thousands on your new home purchase.

Use our free Stamp Duty calculator below to work out how these changes might affect your budget.