Stamp Duty Cut
Since the new announcement regarding stamp duty changes, the UK government confirmed that the stamp duty cuts will end on 31st March 2025. What does a stamp duty cut mean for homebuyers? Let’s take a look.
Autumn Budget 2024
What the Chancellor said regarding the stamp duty cut:
“Today’s budget is centered on the principle that homeownership is a primary way for individuals to own an asset, providing them with a stake in the prosperity of our economy and society,” stated Chancellor Rachel Reeves. “To stimulate growth, build confidence, and support families aspiring to own their home, I am pleased to announce that we are implementing a stamp duty cut.”
“In the existing system, there is no stamp duty on the first £125,000 of a property’s value. We are now doubling this exemption to £250,000. For first-time buyers, who previously paid no stamp duty on purchases up to £300,000, we are raising this threshold to £425,000.”
“Furthermore, we are expanding the property value range for which first-time buyers can claim relief—from the current cap of £500,000 to £625,000.”
What is stamp duty and when is it paid?
Stamp duty land tax (SDLT) is a tax a homebuyer is required to pay on a property or land in England and Northern Ireland.
Different tax rules apply if you live in Scotland where you pay Land and Buildings Transaction Tax or Wales – where it is known as Land Transaction Tax (if the sale was completed after 1 April 2018).
How will the stamp duty cut work?
You are required to pay stamp duty on a residential property starting from a threshold of £125,000.
The stamp duty are as follows:
| Property Purchase Price | Stamp duty rate (% of purchase price) |
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Source gov.uk
The stamp duty cut when buying your first home
You can claim a discount (relief) if the property you buy is your first home. This means you’ll pay:
- no SDLT up to £300,000
- 5% SDLT on the portion from £300,001 to £500,000
You’re eligible if you and anyone else you’re buying with are first-time buyers.
Who benefits from the April 2025 stamp duty change?
If you’ve been keeping one eye on the housing headlines, you’ll have spotted it—stamp duty has changed once again. From April 2025, the government has introduced new thresholds designed to support buyers amidst higher mortgage costs and a cooling property market.
But who actually gains from this move?
The Treasury estimates the changes will spare around 230,000 households from paying stamp duty each year—an uplift on previous figures. Included in that number are an estimated 70,000 first-time buyers, who arguably need the most help to get their foot on the ladder.
First-time buyers: do they really save?
In theory, yes. But in practice? Not always.
While the new threshold means properties up to £325,000 are now exempt for first-time buyers, the reality is that many were already purchasing below the previous limit of £300,000. The average first-time buyer property in England currently sits at around £255,000, so for some, the change won’t feel all that game-changing.
That said, if you’re buying in higher-priced areas like London or the South East, this extra headroom could be a welcome boost. Especially when every pound counts towards your deposit.
A helping hand, or a market stirrer?
These latest tweaks aim to stimulate movement in a sluggish market, with affordability pressures still looming large due to recent interest rate hikes. But the question remains: will this actually help, or simply nudge house prices up again?
After all, previous cuts to stamp duty have had a history of driving prices higher, as buyers rush to take advantage of savings. So, while the intent is positive, the long-term outcome is far from guaranteed.
A move in the right direction?
Stamp duty has been a long-standing cost that adds pressure to anyone looking to move. Whether it’s first-time buyers trying to get on the ladder or older homeowners wanting to downsize. The recent changes do ease the cost slightly, but many feel there’s still more that could be done.
For people thinking about moving to a smaller home, paying nearly the same in stamp duty as before doesn’t exactly encourage them to make the move. So, while this update might help some, it won’t be a game-changer for everyone.
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Stamp Duty FAQs
What is the new stamp duty threshold in April 2025?
For first-time buyers, stamp duty is now only due on homes priced above £325,000. For other buyers, the standard threshold has been increased to £300,000.
Does this mean all first-time buyers pay no stamp duty?
Not necessarily. If you’re buying above the £325,000 threshold, you’ll still pay a portion. But many buyers will now fall below that line and benefit.
Will this cause house prices to rise?
It’s possible. Stamp duty cuts have historically led to short-term price increases, particularly in competitive markets.
Is it still worth buying now, or should I wait?
That depends on your personal situation. If you’ve saved a deposit and found the right home, the new rules might make it more affordable to move now.
Last Updated: April 4th, 2025
