In September 2022, the UK government temporarily raised the stamp duty nil-rate thresholds as part of a mini-budget aimed at stimulating the property market. These temporary thresholds were always scheduled to revert — and on 1 April 2025, they did. Here's everything you need to know about what changed, who's affected, and how to factor the new (well, old) rates into your buying plans.
What Changed on 1 April 2025?
Standard Rates (England & NI)
| Band | Before 1 April 2025 | From 1 April 2025 |
|---|---|---|
| 0% threshold | £0 – £250,000 | £0 – £125,000 |
| 5% band | £250,001 – £925,000 | £125,001 – £250,000 |
| 10% band | £925,001 – £1,500,000 | £250,001 – £925,000 |
| 12% band | Above £1,500,000 | £925,001 – £1,500,000 |
| New 14% band | N/A | Above £1,500,000 (proposed) |
First-Time Buyer Rates
| Item | Before 1 April 2025 | From 1 April 2025 |
|---|---|---|
| 0% threshold | Up to £425,000 | Up to £300,000 |
| 5% band | £425,001 – £625,000 | £300,001 – £500,000 |
| Maximum purchase price | £625,000 | £500,000 |
How Much More Do Buyers Pay?
The reversion to the lower nil-rate band means most buyers pay significantly more stamp duty. Here are examples at key price points:
| Purchase Price | Old SDLT | New SDLT | Increase |
|---|---|---|---|
| £200,000 | £0 | £1,500 | +£1,500 |
| £300,000 | £2,500 | £5,000 | +£2,500 |
| £400,000 | £7,500 | £10,000 | +£2,500 |
| £500,000 | £12,500 | £15,000 | +£2,500 |
| £750,000 | £25,000 | £27,500 | +£2,500 |
| £1,000,000 | £32,500 | £41,250 | +£8,750 |
The maximum increase for standard buyers at the £250k–£925k range is exactly £2,500 — the 5% tax on the £125,000–£250,000 band that was previously tax-free.
Who Is Most Affected?
First-Time Buyers
First-time buyers in London and the South East are hit hardest, as the combination of high prices and reduced nil-rate band means many now pay thousands more. A first-time buyer purchasing at £500,000 in London previously paid £3,750 — and now pays £5,000 if the threshold reverted to £300k, or £0 if the rumoured £425k restoration goes through.
Home Movers
Home movers (not first-time buyers) feel the full force of the reversion. Buying at £300,000, a mover now pays £5,000 stamp duty vs £2,500 before — a 100% increase.
Buy-to-Let & Second Home Buyers
These buyers already pay a 5% surcharge on top of standard rates (increased from 3% in autumn 2024). Combined with the threshold reversion, an investor buying at £250,000 now pays £12,500 in total stamp duty (£0 standard + £12,500 surcharge) vs £7,500 before. The surcharge increase alone adds £5,000 to a £250k purchase.
What This Means for the Property Market
- Reduced buyer demand at the margins — The additional cost effectively reduces purchasing power. A buyer who could stretch to £300,000 before now needs an extra £2,500 upfront
- Possible price softening — Sellers in price-sensitive markets may need to reduce asking prices to compensate for buyers' increased stamp duty burden
- Shift towards sub-£125,000 markets — Properties priced below the nil-rate band remain stamp duty-free, potentially increasing demand in these brackets
- BTL exit continues — Higher stamp duty combined with Section 24 tax changes and increased regulation continues to push smaller landlords out of buy-to-let
How to Plan Your Purchase
- Use the calculator — Our Stamp Duty Calculator always reflects the current rates and will tell you exactly what you owe
- Factor SDLT into your max price — Don't forget to include stamp duty when calculating affordability
- Check FTB eligibility carefully — If you (or your partner) have ever owned property anywhere in the world, you don't qualify for first-time buyer relief
- Consider negotiation — Sellers are aware of the increased cost to buyers. In a balanced market, you may be able to negotiate a small reduction to offset
- Don't rush just for lower stamp duty — Buying the wrong property to save a few thousand in SDLT is a false economy compared to the 6-figure decision of the property itself