If you're a homeowner looking to purchase a property in the UK in 2025, it's essential to be aware of the latest Stamp Duty changes. Whether you're buying for the first time or relocating to a new house, Stamp Duty can make a substantial addition to your bill. In this guide, we'll take you through the most significant Stamp Duty changes in 2025 and their impact on buyers such as yourself.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT), commonly called Stamp Duty, is a tax you pay when buying a property or land in England and Northern Ireland. The amount depends on the property's price and your situation – whether you’re a first-time buyer, purchasing a second home, or a non-UK resident.
What’s New in 2025?
The government has made several Stamp Duty changes in 2025 to help more people enter the housing market. Here are the most important updates:
1. The Return to Pre-2022 Thresholds
In September 2022, the government increased the threshold at which Stamp Duty begins to support buyers during tough economic times. However, this was only a temporary measure. As of 1 April 2025, these thresholds have reverted to their original levels:
-
The zero-rate threshold for all buyers has now returned to £125,000 (from £250,000 under the temporary relief).
-
For first-time buyers, the threshold has dropped from £425,000 to £300,000. This means first-time buyers now pay Stamp Duty on any amount above £300,000 instead of £425,000.
Example:
If you're a first-time buyer purchasing a property worth £350,000:
-
In 2024, you would’ve paid Stamp Duty on £25,000.
-
In 2025, you will now pay Stamp Duty on £50,000.
2. Higher Rates for Second Homes and Buy-to-Let
If you’re buying a second home or a buy-to-let property, you’ll continue to pay an extra 3% surcharge on top of standard Stamp Duty rates. This remains unchanged in 2025, yet it still affects many buyers.
3. Changes for Non-UK Residents
Non-UK residents must still pay a 2% surcharge on top of regular rates. This rule was introduced in April 2021 and remains in effect through 2025. The government has not made any new updates to this, but it’s still important to be aware if you're buying from abroad.
Current Stamp Duty Rates in 2025
Here’s a breakdown of the Stamp Duty rates from April 2025:
|
Price Bracket |
Standard Rate |
First-Time Buyer Rate |
|
Up to £125,000 |
0% |
0% |
|
£125,001 – £250,000 |
2% |
0% |
|
£250,001 – £925,000 |
5% |
5% (on amounts over £300,000) |
|
£925,001 – £1.5 million |
10% |
10% |
|
Over £1.5 million |
12% |
12% |
Keep in mind:
-
First-time buyers do not pay anything up to £300,000.
-
All other buyers start paying from £125,001.
-
Additional home buyers pay an extra 3%.
-
Non-residents pay an additional 2%.
Why Did the Government Make These Changes?
The temporary cuts in 2022 were part of a plan to support buyers during uncertain times. However, the Treasury has stated that returning to previous thresholds is necessary to support public services and bring balance back to the market.
By lowering the zero-rate threshold, the government will collect more in taxes, especially as house prices remain high in many parts of the UK.
How Will These Changes Affect You as a Buyer?
First-Time Buyers:
You may end up paying more Stamp Duty than last year. If your home is priced between £300,000 and £425,000, expect a higher tax bill.
Home Movers:
Buyers moving to a new home will feel the impact more strongly due to the drop in the nil-rate threshold from £250,000 back to £125,000. A £350,000 purchase, for example, now has £6,250 more Stamp Duty than before.
Investors and Second Home Buyers:
You already pay a 3% surcharge, and with the lower base thresholds, your tax bill might be significantly higher.
Non-Residents:
Nothing new has been added, but the 2% surcharge still applies. This makes it more expensive for foreign investors.
Tips to Minimise Your Stamp Duty Costs
-
If you can find a property just under the next tax band, you can save thousands.
-
If one of you qualifies, you may still get the relief.
-
Shared ownership homes or certain leasehold properties may have different rules.
-
Speak to a solicitor or tax adviser before you make an offer.
How Cribs Estates Helps Buyers in 2025
Navigating the property market can feel overwhelming, especially with changing tax rules like Stamp Duty. That’s where Cribs Estates steps in to make things easier for you.
Here’s how we help buyers:
-
We explain what you’ll pay and why, helping you plan your budget better.
-
Our team helps you find homes that fit your goals, and avoid unnecessary Stamp Duty charges where possible.
-
We guide you through the entire buying process, from mortgage advice to legal steps.
Whether you're looking in Merton, Mitcham, or other parts of South London, we know the market inside out. -
Every buyer’s situation is different – we give tailored support based on your goals and budget.
Looking to buy a home in 2025?
Contact Cribs Estates today to get expert help, avoid surprises, and make your home-buying journey stress-free.
Comments