Stamp Duty Land Tax rates change on 31st March 2025 when the discounted thresholds, meaning people pay less when they buy a house, are due to go back to their previous levels. It will impact everyone planning to move but it’s first-time buyers who stand to lose the most.
Currently, first-time buyers pay no stamp duty when buying a home worth £425,000. This threshold will drop to £300,000 from next April meaning they will go from paying nothing, to paying £6,250 on stamp duty on a house of that value. In addition, if the cost of the property you’re buying is up to £625,000, you’re also eligible for discounted rates (5% on properties from £425,000 to £625,000).
From 1st April 2025, first-time buyers won’t have to pay stamp duty on properties up to £300,000, and they’ll only get first-time buyers’ relief on properties up to £500,000 (5% on properties £300,000 to £500,000).
And all buyers can benefit from this golden window as the nil rate threshold which is currently £250,000 meaning you don’t have to pay any Stamp Duty on houses of that value or less, will return to the previous level of £125,000 next year.
The imminent planned changes have led to leading housebuilder Kellen Homes seeing an uptick in inquiries from buyers keen to beat the deadline and cash in on the savings.
Kellen Homes’ Head of Sales and Marketing, Mollie Tomlinson, said savvy buyers are already planning to buy ahead of the change. She explained: “This really is a golden window of opportunity for buyers and in particular first-time buyers. Mortgage rates have come down, the market has some great mortgage products for borrowers, and the Stamp Duty discounts are in place until the 31st March 2025.
“We are seeing buyers moving swiftly to secure their dream Kellen home and pocketing the savings because they know the discounts are coming to an end.”
To take advantage of the current stamp duty rates you need to have completed on your property purchase by 31st March 2025. The average time to complete a house purchase in the UK is between 12 and 16 weeks so the sooner you start, the better chance you have of securing your savings.
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