Following the Autumn Budget, the UK housing market is set to under significant changes in 2025 with reforms to the Stamp Duty Land Tax (SDLT). These adjustments will impact buyers, sellers, and investors alike. If you’re planning to enter the property market, here’s everything you need to know about the upcoming amendments.
What Is Stamp Duty Land Tax?
SDLT is a tax paid when purchasing a property or land in England. The amount payable depends on the property’s purchase price, with different thresholds applying to residential and commercial properties.
To stimulate the housing market following the pandemic, the government introduced a temporary “stamp duty holiday,” allowing buyers to save thousands of pounds when purchasing a new home. This initiative made homeownership more affordable, particularly for first-time buyers and those upsizing. However, the “stamp duty holiday” is set to end on 31st March 2025.
What Are the Key Changes to the Stamp Duty Land Tax?
In the Autumn Budget, several adjustments to SDLT were announced, effective from 1st April 2025.
Reduction in the Nil Rate Threshold
The nil rate threshold, currently set at £250,000, will be reduced to £125,000. This means that stamp duty will once again apply to property purchases valued above £125,000.
The tables below outline the current and future SDLT rates for main residences:
Current SDLT Rates for Main Residences
| Proportion of property value | Rate for main residence |
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
SDLT Rates from 1st April 2025
| Proportion of property value | Rate for main residence |
| Up to £125,000 £125,001 to £250,000 | 0% 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
Increased Threshold for First-Time Buyers
First-time buyers’ benefit will be reduced to £300,00.00. Currently set at £425,000,
Therefore, there will be no SDLT to pay if the purchase price is up to £300,000.
Changes for Investors/Second Homeowners
With the recent increase in the SDLT surcharge to 5% from 3%, investors and those purchasing a second home will need to adjust their budgets. The surcharge applies to all additional residential properties bought by an individual, including investment properties, second homes, or holiday properties. It’s crucial to understand how this will affect your finances before making your next property purchase.
PLESE NOTE Depending on when your transaction commenced, we will do all we can to complete your matter within our indicated time scale. However, please be aware we cannot guarantee completion before this date as your transaction will rely on several factors outside of our control. We would therefore ask that you plan your finances in accordance with any increase in SDLT in respect of your transaction
Macks Solicitors will not accept any liability for any financial loss sustained by you due to stamp duty charges. For further information regarding SDLT rates, please visit: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
Contact us
For more information, you can call us on 01642 843 668; alternatively, complete our online contact form and one of our property team will be in touch.
