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What does the Stamp Duty relief cut mean for all buyers

We discussed last month the changes to stamp duty, and how it will affect first-time buyers.

But how will the changes affect those who are not first-time buyers or those who are looking to purchase a second property?

What are the changes to Stamp Duty Land Tax and how will they affect buyers?

Stamp Duty Land Tax (SDLT) is a tax on property purchases, payable when the transaction is complete.

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

The following table outlines the SDLT bands 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. This indicates that the majority of home buyers will face higher Stamp Duty costs under the new rates.

How will the changes affect those who are buying their second property?

Individuals buying an additional residential property in England and Northern Ireland now face a higher Stamp Duty rate.

Previously, this rate was three per cent above that of main residence purchases, but since October 31, 2024, it has increased to five per cent.

While this move aims to give first-time buyers and those looking to move house an advantage over second-home buyers and landlords, renters are likely to pay part of the cost increase incurred by second-home owners and landlords.

Impact of the change in Stamp Duty Tax

Becky Cutting, one of our Chartered Legal Executives, says: “These changes are expected to create a sense of urgency in the market, with buyers eager to finalise transactions before the new rules take effect. This may result in increased demand in early 2025”.

Anyone who is thinking about or in the process of buying a residential property needs to be aware of all the coming changes.

Get in touch with one of our advisors if you feel the latest changes will affect you.