From 1 April 2025, Stamp Duty Land Tax (SDLT) thresholds returned to their pre-September 2022 levels, ending the temporary relief introduced during the pandemic. This change will impact many buyers, particularly first-time buyers (FTBs), who have benefited from higher exemptions over the past few years.
Changing thresholds
Stamp Duty is a tax paid upon property completion, applying only to purchases above a set price. Prior to 1 April 2025, homebuyers paid no SDLT on properties up to £250,000, while FTBs enjoyed an exemption for homes valued under £425,000.
After 1 April 2025:
- The tax-free threshold for FTBs dropped to £300,000
- All other buyers pay SDLT on properties above £125,000
First-time buyers face bigger costs
While all buyers will be affected, FTBs are likely to feel the impact most. The pandemic-era changes aimed to ease affordability pressures, but the reversion means higher upfront costs for many. Those purchasing homes up to £500,000 will also lose access to first-time buyer relief, potentially adding thousands to their total expenses.
Stay prepared, not panicked
Research suggests that after the changes, fewer than one in 10 buyers will secure a Stamp Duty-free purchase² – down from a third in the current market. This could drive competition for properties just below the new thresholds.
While the changes may feel like a setback, the key is preparation. Buyers should factor SDLT costs into their budgets early, ensuring they fully understand how the revised rates affect affordability.
²Yopa, 2025
Like us on Facebook!
You can find reviews of our company >>Here>>
🚨 Data accurate as of the date of publication –19.05.2025
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q2 2025
