| Stamp Duty Land Tax (SDLT) rates reverted on 1 April 2025 to pre-September 2022 levels | First-time buyers will have to start paying the tax on any home valued above £300,000 | Non-first-time buyers will pay SDLT on properties valued above £125,000. |
From 1 April 2025, Stamp Duty Land Tax (SDLT) rates revert to the thresholds prevailing before temporary increases were put in place in September 2022. What will it mean for homebuyers?
What are the new thresholds?
Stamp Duty is a government tax paid by house buyers as a lump sum upon completion. It is payable only by buyers purchasing a property or land over a certain price bracket. Currently, existing homebuyers pay no SDLT on properties up to the value of £250,000, while FTBs owe nothing on any purchase below £425,000.
After reverting to their previous levels, however, FTBs will have to start paying the tax on any home valued above £300,000. Everyone else will return to paying Stamp Duty on properties valued above £125,000.
First-time buyers bear the brunt
Whilst this change will impact everyone planning to move, it is arguably FTBs who will be hit hardest. In the heat of the pandemic in 2022, the government announced a temporary change to Stamp Duty to support the housing market and those hoping to get on the housing ladder.
Now, affordability questions will return along with the lower thresholds. As well as adding thousands of pounds in extra costs for many, others will miss out on first-time buyers’ relief when buying a property up to £500,000.
Plan, don’t panic
After the change, fewer than one in 10 buyers will get a Stamp Duty free purchase, compared to a third in the current market, research1 suggests. Analysts also predict fierce competition for properties that fall just below the new thresholds.
Although the new thresholds add an unwelcome price bump to a house purchase, buyers should not panic. The key is to factor in any SDLT costs into your budget and understand how this affects your affordability.
1Yopa, 2025
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