Stamp Duty Costs to Increase in the New Year

At the end of March 2025 many buyers will see a lift in Stamp Duty on property purchases.

Those buying a main residence will likely see Stamp Duty rates revert to previous levels that were in place pre-September 2022. Currently buyers buying a home for less than £250,000 do not pay Stamp Duty. This is expected to reduce to the original levels of £125,000 at the end of March 2025. For first time buyers the limit is currently £425,000 but this again is likely to revert to the previous level of £300,000.

The new Stamp Duty for April 2025 is likely to be as follows:

Up to £125,000 – Zero

The portion from £125,001 to £250,000 – 2%

The portion from £250,001 to £925,000 – 5%

For higher priced properties £925,001 – £1.5 Million 10%

£1.5 million + £12%    

Robert Gardner, Nationwide’s chief economist recently commented that:

“This will lead to a jump in transactions in the first three months of 2025 (especially March), and a corresponding period of weakness in the following three to six months, as occurred in the wake of previous stamp duty changes.”  

Chancellor Rachel Reeves also announced in the recent Budget that people buying a second home would see the extra stamp duty rise from an additional 3% to 5%.