As of April 1, 2025, significant changes to the Stamp Duty Land Tax (SDLT) have come into effect in the UK, impacting both first-time buyers and existing homeowners.
For first-time buyers, the SDLT exemption threshold has decreased from £425,000 to £300,000. This means that purchases above £300,000 now incur stamp duty charges. For instance, a first-time buyer purchasing a property valued at £325,000 will now face a stamp duty bill of £1,250, whereas previously, no stamp duty would have been due.
Similarly, for existing homeowners, the threshold at which stamp duty becomes payable has been reduced from £250,000 to £125,000. This adjustment results in higher tax liabilities for many home movers. For example, purchasing a property worth £300,000 now attracts a stamp duty charge of £5,000, an increase from the previous £2,500.
While no one enjoys paying more tax, these rises were long anticipated and there are several tips that will help you navigate the impact of increased stamp duty costs:
- Budget smartly: Include stamp duty in your overall property budget calculation before you start house hunting. This will ensure affordability and prevent unexpected disappointment or financial strain.
- Negotiation: Use your estate agent’s expertise to negotiate a fair offer and adjust the asking price on a property you wish to purchase. A skilled agent will assess and advise on realistic discounts, ensuring your offer is competitive without risking offense to the seller.
- Leverage experts: Speak with a mortgage advisor who has access to 1,000s of mortgage deals and review all costs involved in a property purchase. Our in-house mortgage team offers expert advice and can quickly compare thousands of mortgage deals from high street and specialist lenders.
Staying informed about market changes and proactively planning can help buyers navigate the evolving property market landscape effectively.
To find out more about our mortgage services and to book an appointment, please visit https://www.gascoignehalman.co.uk/mortgages/.
Correct at time of publishing 16.04.25 MS/GH/8168/04.25
