Guide to Stamp Duty Changes 2025

If you’re planning to buy or sell a home in the UK this year (or even if you’re not), the chances are high that you keep hearing one thing over and over: Stamp duty is changing in 2025.

As of April 2025, the government has introduced a fresh set of stamp duty changes that could impact how much you pay when buying a property within the UK.

Whether you’ve bought and sold a number of homes over the years or you’re a first-time buyer, it’s vital that you know what’s new and how it might affect your budget and timeline. Here in this guide, we’ll help you by breaking down the biggest updates as simply as possible, including what the stamp duty changes in 2025 mean for first-time buyers, how the April updates could affect the market, and what it means for moves this year.

What Are the UK Stamp Duty Changes in April 2025?

In April 2025, new roles came into effect which altered how stamp duty is calculated in England and Northern Ireland. The aim of these changes is to make the property market more accessible, especially for first-time buyers, and to get the housing market moving. The overall result is that the new, lower thresholds mean that some home buyers could now need to pay stamp duty when they wouldn’t have had to before the changes rolled out. Here’s a rundown of what the actual changes are. 

Key Changes to Stamp Duty in April 2025

The nil-rate threshold has been reduced: This means that the point at which you start paying stamp duty has dropped. The threshold has dropped from £250,000 to £125,000. 

Less relief for first-time buyers: The lower stamp duty rate that benefits first-time buyers has dropped from £425,000 to £300,000.

Tapered relief for first-time buyers: First-time buyers’ relief has dropped from £625,000 to £500,000.

Revised SDLT (Stamp Duty Land Tax) rates for standard buyers: The percentage of stamp duty that standard buyers will pay has increased, as laid out below.

Revised SDLT rates for standard buyers:

• 0% on the first £125,000 (no change)
• 2% on the portion from £125,001 to £250,000 (up from 0%)
• 5% on the portion from £250,001 to £925,000 (no change)
• 10% on the portion from £925,001 to £1.5 million (no change)
• 12% on any amount above £1.5 million (no change)
• 
  

SDLT Rates change for Buy to Let Second Home Buyers: Individuals who buy an additional property in England will see some changes in the SDLT rates from April 2025.

• 5% on the first £125,000 (no change)
• 7% on the portion from £125,001 to £250,000 (up from 5%)
• 10% on the portion from £250,001 to £925,000 (no change)
• 15% on the portion from £925,000 to £1.5 million (no change)
• 17% for more than 1.5 million (no change)

If you are planning to move and want to know how much you are likely to pay in stamp duty, you can use the official SDLT calculator. 

What do the 2025 Stamp Duty Changes Mean for Buyers and Sellers?

The changes rolled out by the government will impact many people looking to move home this year. 

Increased Costs: The lowered nil-rate thresholds mean that more buyers will have to pay SDLT, which will increase the overall cost of purchasing a new property.
Market Activity: The changes will, without a doubt, influence buyer behaviour. In the months leading up to the change in stamp duty, there was a surge in house sales, where buyers were trying to avoid paying more by moving before the changes took effect. 

Planning Strategically: Both buyers and sellers will need to factor in the stamp duty changes when planning transactions. The potential impact on both affordability and market dynamics will need to be taken into consideration.

Why Has the Government Changed Stamp Duty?

The government’s decision to reduce the stamp duty nil-rate threshold after temporarily raising it during the pandemic and cost of living crisis was big news, and sparked commentary amongst sellers, buyers and industry professionals. 

But why did they do it?

1. To increase tax revenue: The obvious reason is that the government wanted to raise more money through stamp duty changes. More buyers paying more stamp duty boosts revenue, which then can be used for public services, budget gaps and so on. 

2. To Cool an Overheated Market: The temporary SDLT cuts introduced in 2020 were implemented to stimulate the housing market, which grew stale during the pandemic. Some argue that this action actually overheated the market, pushing up house prices and making it even more difficult for people to buy a home. The thinking here is that by introducing a lower threshold, rapid price growth may slow, and it could level the playing field for buyers who were being priced out. Some would argue, though, that now they will be priced out by more expensive stamp duty. 

3. Rebalance Buyer Behaviour: Another aim is to help reduce demand for second-home buyers and investors, who seemed to benefit disproportionately from the cuts introduced in 2020. The goal here is to prioritise owner-occupied homes and first-time buyers. 

4. A Move Away from Temporary Tax Breaks: Stamp duty cuts were only ever meant to be short-term. Raising them again aligns with a more “normal” shift in tax policy, in line with fiscal planning carried out before the pandemic. 

We know that moving house can be stressful enough, even without the added cost of more expensive stamp duty. If you are planning a move in 2025, our expert removals team can help alleviate some of the pressure. Book a free moving survey today to get the conversation started!