Buying a Home in 2025?
Here’s How Stamp Duty Has Changed
If you’re planning to buy a home in England or Northern Ireland this year, there’s an important update you should know — stamp duty has increased.
From 1 April 2025, the government changed the rules, which means many home buyers will now pay more in stamp duty than they would have a few months ago.
Here’s a simple breakdown of what’s changed, who it affects, and what it means for your budget.
What Is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy a property or land in England or Northern Ireland. It applies whether you’re:
- Buying your first home
- Moving to a new one
- Buying a second property (like a buy-to-let or holiday home)
You pay stamp duty after your sale completes—usually your solicitor will sort this for you—but it needs to be paid within 14 days1.
What Changed in April 2025?
During the pandemic and economic uncertainty, the government increased the tax-free thresholds to make moving more affordable. That ended on 1 April 2025, so the thresholds are now back to where they were before.
Here’s what that means in real terms1:
- You now start paying stamp duty on anything over £125,000 (it used to be £250,000)
- If you’re a first-time buyer, you now only get tax relief up to £300,000 (previously £425,000)
- If your home costs more than £500,000, you get no first-time buyer discount at all
How Much Will I Pay Now?
Here are the current rates for most buyers2:
| Property Price | Stamp Duty Rate |
| Up to £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Over £1.5 million | 12% |
First-Time Buyers – What’s Changed?
If you’ve never owned a home before, you’ll still get a discount—but it’s not as generous as it was1:
| Price of Your First Home | What You’ll Pay |
| Up to £300,000 | 0% stamp duty |
| £300,001 – £500,000 | 5% on the part over £300,000 |
| Over £500,000 | No discount at all |
Example:
If you’re buying your first home for £500,000, you’ll pay £10,000 in stamp duty.
Buying a Second Property? There’s Extra Tax
For buyers, the increased supply of mortgage products and eased affordability checks could significantly expand borrowing options. For existing homeowners, now may be an opportune time to review existing mortgage arrangements and consider securing a new deal.
If you would like to explore how these changes might affect your borrowing potential or discuss whether it is the right time to remortgage, please get in touch to arrange a consultation.
Real Examples
EXAMPLE 1:
Buying a £295,000 home (not a first-time buyer)
- 0% on the first £125,000 = £0
- 2% on the next £125,000 = £2,500
- 5% on the last £45,000 = £2,250
- Total = £4,750
EXAMPLE 2:
First-time buyer purchasing at £500,000
- 0% on the first £300,000 = £0
- 5% on the remaining £200,000 = £10,000
- Total = £10,000
Stamp duty works differently in Scotland and Wales
SCOTLAND
You’ll Pay LBTT (Land and Buildings Transaction Tax)2
- 0% up to £145,000
- 2% from £145,001 to £250,000
- 5% from £250,001 to £325,000
- 10% from £325,001 to £750,000
- 12% above £750,000
- First-time buyers get 0% up to £175,000
- Buying a second home? Add 8% extra on top
WALES
You’ll Pay LTT (Land Transaction Tax)2
- 0% up to £225,000
- 6% from £225,001 to £400,000
- 7.5% from £400,001 to £750,000
- 10% from £750,001 to £1.5m
- 12% above £1.5m
- No first-time buyer relief
- Buying a second property? You’ll pay up to 17%, depending on the price
What should you do now?
If you’re thinking about buying, don’t let stamp duty catch you by surprise. Here’s what I recommend:
- Check how much you’ll need to pay using the official calculator
- Add it to your total budget so you don’t get caught short later
- Get advice early, especially if you already own another property or are buying your first home
References:
- Gov.uk (2025). Stamp Duty Land Tax. Available at: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates [Accessed 23 Apr. 2025].
- BBC (2025). Stamp duty: What is it, how much is it and how is it changing? Available at: https://www.bbc.co.uk/news/business-53319433 [Accessed 23 Apr. 2025].
Need Help Working It All Out?
As a mortgage adviser, we help people like you plan your next move. If you’ve got questions about buying your first home, upgrading, or investing in property, we’re here to help.
Contact the team on 01565 874 246
Email: hello@malloryfinancial.co.uk
Totally recommend Mallory Financial…
I couldn’t recommend Mallory Financial enough. Jayne and colleagues were so helpful through the whole process of renewing our mortgage deal and worked hard to get us the best possible offer at the time. Always responded quickly to emails and kept us informed at all times. I will definitely be using their services again in the future.
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