UK Stamp Duty Changes 2025: What Homebuyers Need to Know

If you’re planning to buy property in England or Northern Ireland, there’s some big news you should know about. As of April 1, 2025, the temporary Stamp Duty relief introduced back in 2022 has officially ended, and several major changes are now in effect.

For a while, buyers enjoyed higher tax-free thresholds, which made getting on the property ladder a little easier (and a bit cheaper). But from April, those thresholds have been pulled back to their pre-2022 levels, meaning buyers may now face steeper costs when purchasing a home.

For most buyers, the amount you can spend before paying any Stamp Duty has dropped from £250,000 to £125,000. That’s a pretty significant shift. And for first-time buyers, the nil-rate threshold has been lowered from £425,000 to £300,000. If you’re buying for the first time and your property is valued between £300,001 and £500,000, you’ll now pay 5% on the portion above £300,000. Anything over £500,000? Unfortunately, no first-time buyer relief applies at all.

Investors have also been hit. The surcharge for buying additional properties, like a second home or a buy-to-let, has gone up from 3% to 5%. And if you’re purchasing through a company or other non-individual entity, expect to pay even more: the rate for properties over £500,000 has jumped from 15% to 17%.

Unsurprisingly, the lead-up to these changes saw a surge of activity. Buyers rushed to beat the deadline, with completions by first-time buyers up 62% in the first quarter of 2025 and home movers up 74%. But once April hit, the brakes slammed on. Property transactions dropped 64% compared to March, and house prices have already started to dip – falling by 0.4% in May, according to Halifax.

So, what does this mean for you? Whether you’re buying your first home, upsizing, or investing, it’s more important than ever to factor Stamp Duty into your budget. These changes could impact your affordability and your return on investment, especially for landlords.

However, as we’ve seen house prices drop because of the Stamp Duty increase. And with the interest rates dropping having reduced, it could actually be a really great time to buy. If you’re unsure how the new rules affect you, chat with us to help you plan your next steps with confidence. Because when it comes to important financial decisions, having expert guidance on your side can make all the difference.