7 Jan 2025
Stamp duty: how is it changing in 2025?
What is stamp duty?
Stamp Duty Land Tax (SDLT) is a tax charged in England, Wales, and Northern Ireland by the Government. The amount of tax you will be required to pay depends on the cost of the property, whether you will be living in the property, and whether you own any other properties.
You will be required to pay this tax if you:
- Purchase a freehold property
- Purchase a new or existing leasehold
- Take on a mortgage or buy a share in a house
- Purchase a property through a shared ownership scheme
How much will stamp duty cost?
Up until 31st March 2025, those purchasing a property under £250,000 will be exempt from having to pay stamp duty, first time buyers are not required to pay stamp duty for a property costing less than £425,000.
However, changes on stamp duty were announced during the August budget by Chancellor, Rachel Reeves. These higher thresholds will end on 31st March 2025 where they will go back to the previous levels set in the mini-budget in September 2022.
From 1st April 2025
First time buyers
£0 - £300,000 – no stamp duty due
£300,001 - £500,000 - 5% charged on the £300k+
£500,000 - you cannot claim relief
Residential property
£0 - £125,000 - no stamp duty due
£125,001 - £250,000 - 2% charged
£250,001 - £925,000 - 5% charged
£925,001 - £1.5 million - 10% charged
£1.5 million+ - 12% charged
Additional properties
You will usually be required to pay an additional 5% on top of stamp duty rates if you are buying another residential property.
Example:
You buy a house for £465,440 from April 2025
| Type | Stamp duty cost |
| First time buyer | £8,272 |
| Residential (moving home) | £13,272 |
| Additional property | £36,544 |
When do you need to pay stamp duty?
You will have two weeks to pay stamp duty from the date of completion.
If you would like to find out more, please feel free to give our experienced mortgage brokers a call on 01628 507477.
Recent posts
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
7 days ago
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.
Lloyds boost lending for first-time buyers
14 days ago
Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.
As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more.
The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.
Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.
Nationwide ease criteria for first-time buyers
17 days ago
Nationwide ease their ‘Helping Hand’ mortgage designed to help first-time buyers get onto the property ladder by allowing them to borrow up to six times their income.
Ways to save money over the summer holiday
23 days ago
Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break
The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.
More information
Trusted by
