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Stamp Duty Land Tax – What you need to know about the changes

Changes to Stamp Duty Land Tax (SDLT) announced in the Autumn Budget have come into effect.

SDLT is a tax on property purchases, and the new rates will have a substantial impact on landlords and additional home buyers.

Chartered Legal Executive Becky Cutting explains what you need to know about the recent changes to SDLT.

New SDLT thresholds

The amount of SDLT you pay is dependent on the property value, whether you are a first-time buyer or not, and whether it is an additional property (not your main home).

The following table outlines the main SDLT thresholds from 1 April 2025:

Property value	SDLT rate
Up to £125,000	0 per cent
£125,001 – £250,000	2 per cent
£250,001 – £925,000	5 per cent
£925,001 – £1,500,000	10 per cent
£1,500,001+	12 per cent

According to the latest government data, the average house price in the UK is £293,000.

Therefore, the majority of home buyers will now face higher SDLT costs.

First-time buyers

The SDLT threshold for first-time buyers has been reduced from £425,000 to £300,000. Additionally, the maximum value for which the First-Time Buyer’s Relief can be claimed has decreased from £625,000 to £500,000.

While many first-time buyers will still fall below this new threshold, if you’re planning to buy in more expensive areas (such as London), you will likely face the higher SDLT costs than you might have anticipated.

It is essential that you review SDLT rates and have a clear understanding of your expected costs before making an offer on a property.

This will allow you to budget for other costs, such as conveyancing.

Additional property buyers

Individuals buying a second property pay an additional SDLT rate above that of main purchase residences.

This additional rate has increased from three per cent to five per cent.

By making it more expensive to buy a second home or investment property, the Government hopes to discourage second property purchases and free up properties for main home buyers.

However, renters are likely to pay part of the cost increase incurred by second-home owners and landlords.

Navigating SDLT changes

If you are thinking about making a residential property purchase, it is important to understand the changes to SDLT.

Whether you are a first-time buyer, landlord, or seasoned homeowner, our experienced property solicitors can help you determine your liability and pay SDLT.

We can also support you if you are looking to buy a second home for residential or rental use.

Contact our Residential Property team today for tailored advice on how the latest SDLT changes will affect you.