Most house moves take up to 14 weeks to complete. So, to avoid the increased tax rate, our mortgage experts recommend starting your purchase before Christmas 2024.
Stamp Duty Tax rates are changing from 31st March 2025, which will add thousands to your home move, especially for first-time buyers.
At the moment, first-time buyers don’t have to pay stamp duty on homes valued up to £425,000. However, starting in 2025, this threshold will decrease to £300,000. This means that instead of paying nothing, first-time buyers could be looking at a sizable additional expense that could affect their property affordability.
So, What is Stamp Duty Exactly?
Stamp duty, or Stamp Duty Land Tax (SDLT), is a tax that the buyer pays to the government when purchasing a property or land that exceeds a certain price. It’s paid as a lump sum when the sale is completed.
How much stamp duty you owe depends on several factors, including:
- If you’re a UK resident
- Buying as an individual or as a limited company
- Whether you’re a first-time buyer
- If you’re moving home
- If you’re purchasing an additional place
- Buying a freehold or leasehold
- If you own a property overseas
- If you are transferring equity to another person
Why the change?
Back in September 2022, the Government introduced a temporary reduction in stamp duty to help reduce the costs of moving home. The goal was to support the housing market, as well as the jobs and businesses connected to it, while also helping those trying to get their foot on the property ladder.
Initially, these changes were meant to be permanent, but in the Autumn of 2022, the government announced that the higher residential nil-rate thresholds would return back to their previous levels on the 31st of March 2025.
What Will the Changes Be?
The nil-rate threshold will go back to £125,000 from its current level of £250,000.
For first-time buyers, the zero-rate threshold will decrease from £425,000 to £300,000.
To see a full breakdown of potential Stamp Duty costs, head over to these calculators >
The table shows the current stamp duty rates in England:
| Proportion of property value | The rate for main residence |
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
From 31st March 2025, the stamp duty rates will be:
| Property value | The rate for main residence |
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
Current first-time buyer stamp duty rates:
| Property value | The rate for first-time buyers |
| Up to £425,000 | 0% |
| £425,001 to £625,000 | 5% |
First-time buyer stamp duty rates from 31st March 2025:
| Property value | The rate for first-time buyers |
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
How can I beat the stamp duty changes?
The average time to complete a property purchase in the UK is between 12 and 16 weeks and can sometimes take even longer.
So, to save yourself a sizable additional expense for your home move you’ll need to start your purchase by December 2024 at the latest.
So – don’t delay and let The Mortgage Broker kick-start your move to your dream home today!
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