Important Update: Stamp Duty Changes from 1 April 2025
Yes, from 1 April, stamp duty changes are coming. These changes will impact new home buyers, including first-time buyers who are looking to purchase a new-build home. Below, we outline the forthcoming changes and how they’ll affect new home buyers.
From 1 April 2025, the nil rate threshold for stamp duty on standard residential dwellings, including new-build homes, will decrease from £250k to £125k.
| Property Price Range | New Stamp Duty Rate |
|---|---|
| £0 - £125,000 | 0% |
| £125,001 - £250,000 | 2% |
| £250,001 - £925,000 | 5% |
| £925,001 - £1.5m | 10% |
| Over £1.5m | 12% |
The nil rate threshold for first-time buyers will reduce from £425,000 to £300,000. Here’s what this means:
With the threshold for no stamp duty lowered, the average new-build home will require an extra £2,500 in stamp duty charges.
| Property Price | New Stamp Duty (From April 2025) | Previous Stamp Duty |
|---|---|---|
| £300,000 | £5,000 | £2,500 |
| £865,000 | £33,250 | £30,750 |
Unfortunately, first-time buyers are the most impacted. With the cost of living already high, these additional expenses make it harder to save for a deposit and secure a mortgage.
Furthermore, the reduction in first-time buyer relief could slow the housing market, affecting housebuilders and developers as potential buyers delay their purchases.
As we wait for the Chancellor’s Spring Budget, many are hoping for additional support for first-time buyers.
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