In October 2023, the UK government announced a major change to Stamp Duty Land Tax (SDLT), set to take effect from April 1, 2025. This policy revision means that, from April 2024, more homebuyers will be required to pay higher stamp duty fees due to the lower tax exemption threshold.
While many buyers are eager to complete transactions before the new tax rates come into effect, the UK property transaction process typically takes around 5 months. This slow-moving system means that thousands of buyers will miss the deadline and be forced to pay higher taxes. How many buyers will be impacted? Which regions will be hit the hardest? Here’s what you need to know about the 2025 stamp duty changes.
74,000 Buyers to Be Affected, UK Government to Collect £142 Million in Additional Tax Revenue
According to Rightmove, one of the UK’s leading property platforms, an estimated 74,000 buyers will fail to complete their property purchases before March 31, 2025. This delay will lead to an additional £142 million in stamp duty payments. Among them, 25,000 first-time buyers will be particularly affected, collectively paying an extra £34 million in tax.
These changes will significantly impact first-time buyers and middle-class homebuyers. The lower exemption threshold will make homeownership more expensive, effectively reducing the affordability of properties within their budget.
Southeast England to Experience the Greatest Impact
Regions with higher property prices will be most affected by the stamp duty adjustments, with Southeast England—including London, Oxford, and surrounding areas—facing the biggest impact.
Market estimates suggest that approximately 14,000 buyers in Southeast England will miss the tax deadline and lose their eligibility for the current lower rates. As a result, these buyers will pay thousands more in stamp duty when purchasing properties in high-demand, high-value areas.
UK New Stamp Duty Land Tax (SDLT) Rate in 2025
From April 1, 2025, the UK government will lower the tax-free threshold for stamp duty, affecting both first-time buyers and existing homeowners.
Stamp Duty Changes for First-Time Buyers
Currently, first-time buyers are exempt from stamp duty on properties priced up to £425,000. For homes priced between £425,001 and £625,000, a 5% tax applies. However, from April 2025, the exemption will be reduced to £300,000, and properties priced between £300,001 and £500,000 will be taxed at 5%.
Current vs. 2025 Stamp Duty Rates for First-Time Buyers
| Property Price Range | Current Stamp Duty (On/Before 31st March 2025) | New Stamp Duty (From 1st April 2025) |
| £0 – £300,000 | 0% | 0% |
| £300,001 – £425,000 | 0% | 5% |
| £425,001 – £500,000 | 5% | 5% |
These changes will increase the cost of buying homes above £300,000, making it more challenging for first-time buyers to enter the property market.
Stamp Duty Changes for Non-First-Time Buyers
For non-first-time buyers, the stamp duty changes are even more substantial. Previously, properties priced up to £250,000 were exempt from stamp duty, but from April 2025, the exemption will be lowered to £125,000. This means that most homebuyers will now have to pay additional taxes when purchasing property.
Additionally, for properties priced between £125,001 and £250,000, a 2% stamp duty tax will now apply. For homes valued above £250,000, the tax rates will remain unchanged.
Current vs. 2025 Stamp Duty Rates for Non-First-Time Buyers
| Property Price Range | Current Stamp Duty (On/Before 31st March 2025) | New Stamp Duty (From 1st April 2025) |
| £0 – £125,000 | 0% | 0% |
| £125,001 – £250,000 | 0% | 2% |
| £250,001 – £925,000 | 5% | 5% |
| £925,001 – £1,500,000 | 10% | 10% |
| £1,500,001 or above | 12% | 12% |
