The 2024 autumn budget introduced significant changes to Stamp Duty Land Tax, which come into force on the 1st April 2025. We outline these changes so you can see what changes they make to home buyers around the UK.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax payable to HMRC by anyone buying property or land in England – it is referred to as Land Transaction Tax in Wales. The amount of SDLT payable depends on several factors, including the buyer’s residency status, the type of buyer (whether it’s an individual or a company), whether the purchaser is a first-time buyer, and whether the property is being bought as a main residence or as an additional property.
Current vs Future SDLT Rates For Standard Residential Purchase
For UK residents replacing their main residence:
Current Rates (until March 31, 2025)
| £0 – £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| Over £1.5m | 12% |
New Rates (from March 31, 2025)
| £0 – £125,000 | 0% |
| £125,001 – £925,000 | 5% |
| £925,001 – £1.5m | 10% |
| Over £1.5m | 12% |
Key Changes in SDLT from April 1st 2025
- Standard nil rate threshold decreases from £250,000 to £125,000
- First-time buyer nil rate threshold decreases from £425,000 to £300,000
- Maximum purchase price for First-Time Buyers Relief reduces from £625,000 to £500,000
Impact on Property Buyers For Average Property Prices
We list recent average property prices per type in England, along with their old and new SDLT rates.
Detached properties: Average price £455,000
Current SDLT: £12,750
Future SDLT: £15,250
Semi-detached properties: Average price £295,000
Current SDLT: £2,250
Future SDLT: £4,750
Terraced properties: Average price £255,000
Current SDLT: £250
Future SDLT: £2,750
Changes for First-Time Buyers
First-time buyers have been hit hard by the new SDLT system. Thresholds for paying have significantly reduced, potentially increasing the length of time they need to save for their first property purchase.
Timing Considerations Why Everyone Is In A Hurry!
Average residential property transactions take 12 to 16 weeks to complete, and completion times may change because of a range of unforeseen circumstances. Extra time may also be also needed for marketing and to find buyers – so as completing your purchase before March 31 could save £2,500 for residential buyers, time is of the essence.
Planning Your Purchase
Understanding these changes can help inform your property purchase timeline. For fast, personalised advice about these changes, you should contact your local Cunningtons branch at Braintree, Brighton, Chelmsford, Croydon, Hornchurch, or Wickford as soon as possible.