What Buyers need to know before 31st March 2025
From 31st March 2025, Stamp Duty is set to revert to its pre-discount rates:
- 0% – up to £125,000
- 2% – from £125,001 to £250,000
- 5% – from £250,001 to £925,000
- 10% – from £925,001 to £1.5 million
- 12% – on the remaining amount above £1.5 million.
You face paying a further 3% on top of these rates if you own another residential property:
- 0% becomes 3%
- 2% becomes 5%
- 5% becomes 8%
- 10% becomes 13%
- 12% becomes 15%.
Current Stamp Duty Rates
| Property Purchase Price Bands | Stamp Duty Rate |
| Up to £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1,500,00 | 10% |
| Over 1.5 Million | 12% |
Current Lower rates of SDLT for first-time buyers are as follows:
- 0% on the first £425,000 of the property price
- 5% on the portion between £425,001 and £625,000.
This first time buyer relief is available only for properties under £625,000. If you are purchasing above this price you will pay the same rates as a non-first-time buyer.
How The New SDLT Will Affect First-Time Buyers
The new Stamp Duty changes are likely to have the most impact on first-time buyers making it harder for them to get onto the property ladder:-
- Lower Tax-Free Threshold: The nil-rate threshold for first-time buyers will drop from £425,000 to £300,000. This means first-time buyers will have to start paying Stamp Duty on homes priced above £300,000, instead of the current £425,000.
- Smaller Maximum Purchase Price for Relief: The maximum home value for which first-time buyers can claim relief will decrease from £625,000 to £500,000. If a property costs more than £500,000, first-time buyers won’t qualify for any relief and will need to pay standard Stamp Duty rates.
If your purchase completes before 31st March 2025 you can still take advantage of the lower Stamp Duty rates. Bearing in mind the average freehold residential property purchase can take between 12 and 16 weeks to complete.
What If I am a First Time Buyer but my partner isn’t?
As far as stamp duty is concerned you both have to be first time buyers to qualify for stamp duty relief.
Stamp Duty changes for second homes and investment properties
Starting from 31 October 2024 buyers of additional properties, whether a second home or an investment property, will see an increase in the Stamp Duty surcharge. Buyers of a second property previously paid an additional 3% surcharge on top of the standard rate. From 31 October 2024 the surcharge will increase by 2% to a total of 5% for second homes and investment properties.
Stamp Duty rates for Non UK Residents
You are likely to be classed as a non-UK resident or overseas buyer if you are not present in the UK for at least 183 days or six months during the 12 months before your property purchase.
You may need to pay a 2% Stamp Duty surcharge, in addition to any other rates that may apply to you, such as first-time buyer or additional property rates as outlined above.
That means that an overseas buyer who has already owned a property may need to pay 2% Stamp Duty on houses purchased up to the value of £250,000; 7% on the portion of the purchase price between £205,001 and £925,000; 12% on the portion between £925,001 and £1.5million; and 14% on the remaining balance above £1.5million.
If you are looking to purchase a property, our friendly and experienced residential property will be happy to provide you with a quote for the purchase and explain how the stamp duty changes will be applied to your circumstances.
- Redefining the home moving experience - March 25, 2026
- Guest Walker Expands Commercial Property Department - January 7, 2026
- In memoriam - November 13, 2025
