Stamp Duty Changes: Here’s Everything You Need to Know

What’s Changed?

In September 2022, the government temporarily raised the threshold at which stamp duty kicks in, with the aim of stimulating the housing market. This means that buyers paid no stamp duty on homes priced up to £250,000. First-time buyers benefited even more, with a tax-free threshold of £425,000 on properties under £625,000. However, those measures were always intended to be short-term. As of 1 April 2025, the standard stamp duty thresholds have returned to their pre-2022 levels:

• £0–£125,000 (or £300,000 for most first-time buyers): 0%
• £125,001–£250,000: 2%
• £250,001–£925,000: 5%
• £925,001–£1.5 million: 10%
• Over £1.5 million: 12%

This means many buyers are now paying stamp duty where previously they wouldn’t have, and the difference can add thousands of pounds to the cost of a move.

Who’s Affected?

The changes to stamp duty impact both first-time buyers and home movers. For example, someone purchasing a £275,000 property before April paid nothing in stamp duty. Now, they face a bill of £2,500.

First-time buyers are particularly affected, with the zero-rate threshold falling back to £300,000. If your purchase exceeds that amount, you’ll now be taxed on the difference. The maximum purchase price for which First-Time Buyers Relief will return to the previous level of £500,000, from £625,000.

Now that the new rules are in place, it’s even more important to factor stamp duty into the overall cost of buying a home. Whether you're planning your first step onto the property ladder or moving to accommodate a growing family, these changes could significantly affect your budget.

What About Additional Properties?

If you’re buying an additional residential property, such as a buy-to-let or second home, you’ll still pay a surcharge on top of standard rates. As of this month, that surcharge starts at 5% for properties up to £125,000, up from 3% previously. For corporate buyers acquiring residential property worth over £500,000, the flat 17% stamp duty rate remains in place.

Get in Touch with Our Property Experts

Whether you’re a first-time buyer, a home mover, or an investor, understanding how stamp duty applies to your situation is essential. At Balgores, we’re here to guide you every step of the way, from working out your total buying costs to helping you secure your ideal home. Our experienced team is on hand to answer your questions surrounding stamp duty and support you throughout your property journey.