Stamp Duty Land Tax (SDLT) rates are changing as of 1st April 2025, affecting property and land purchases across England and Northern Ireland. This is likely to have an impact on anybody looking to purchase in the next few months. Here is what you need to know:
Why is Stamp Duty Land Tax changing?
SDLT rates were temporarily lowered in September 2022 in a bid to support the housing market and help those trying to get on the property ladder.
The April 2025 change will therefore see rates revert to the pre-September 2022 rates.
What are the changes?
Here are the current rates for main residences:
| PURCHASE PRICE (£) | CURRENT SDLT RATE |
| 0 – 250,000 | 0% |
| 250,001 – 925,000 | 5% |
| 925,001 – 1.5 million | 10% |
| Over 1.5 million | 12% |
Here are the rates from 1 April 2025 for main residences:
| PURCHASE PRICE (£) | RATE FROM 1 APRIL 2025 |
| 0 – 125,000 | 0% |
| 125,001 – 250,000 | 2% |
| 250,001 – 925,000 | 5% |
| 925,001 – 1.5 million | 10% |
| Over 1.5 million | 12% |
Do first-time buyers pay stamp duty?
Currently, first-time buyers don’t pay SDLT on properties up to a purchase price of £425,000.
From 1st April 2025, this will be reduced, meaning that SDLT won’t be payable up to only £300,000.
Additionally, in order to claim the First-time Buyers relief, the purchase price will need to be less than £500,000, whereas this figure is currently £625,000.
What about second homes or investment properties?
As of 1st April 2025, there will be an extra band added into the stamp duty thresholds for additional property purchases. The new band is for properties purchased for between £125,001 and £250,000, which will attract SDLT of 7% of the purchase price.
So, how will this affect me?
Any purchases that complete after the 1st April 2025 will attract the new, higher rates.
There are lots of factors that can impact how quickly a purchase transaction completes, such as:
- Chains – the longer the chain, the longer the transaction is likely to take.
- Leasehold properties – these purchases require additional legal work due to the complexities that can be involved
- Mortgages – the time taken for a mortgage offer to be obtained and issued can cause delays for the whole of the chain.
- Legal title issues – such complex issues anywhere in the chain can take time to be adequately resolved by the Conveyancers involved.
- Probate – if a property in the chain is being sold by executors, they will need a Grant of Probate to allow them to legally sell the property. These can often take may months to be issued.
How can Talbots help me?
Whether you are a first-time buyer, an experienced investor, or anything in between, speak to a member of Talbots’ specialist team, to help you navigate these changes effectively.
You will benefit from our comprehensive understanding of the property market and the impending changes to SDLT regulations. Our team is dedicated to ensuring that your transaction is handled efficiently, minimizing delays and navigating obstacles that could arise within the chain.
Want to ask our team a question?
Disclaimer
The contents of this blog or any other published by Talbots Law cannot be considered as legal advice. You should take no action without prior consultation with a qualified solicitor or legal professional.