The UK property market is set to experience significant changes for all purchases completing on or after from the 1st April 2025 with the introduction of new Stamp Duty (SDLT) SDLT rules.
These changes will have implications for a wide range of buyers, from first-time homeowners to seasoned investors. We believe it’s essential for our clients to understand these changes and their potential impact.
Key Changes to SDLT from the 1st April 2025
The stamp duty tax “Holiday” is coming to an end and there will be a return to Lower Tax-Free Thresholds on all property purchases:
- The standard residential SDLT nil-rate band will drop from £250,000 to £125,000, meaning buyers will pay tax on properties over £125,000.00
- First-time buyers will see their nil-rate band reduced from £425,000 to £300,000. Therefore, if you are a First Time Buyer- you will pay tax on any property over £300,000.00.
- Additionally, the maximum property value eligible for first-time buyer relief will fall from £625,000 to £500,000. This means that any property worth over £500,000.00 will be subject to the same stamp duty rates for first time buyers as second-time buyers.
Impact: All Buyers across the board will face higher tax liabilities on their purchases. First-time buyers may find these changes can affect what they are able to afford, especially in areas with higher property prices.
Higher SDLT charges on Additional Properties:
The additional charge for buying second homes and buy-to-let properties has already increased from 3% to 5% as of October 2024, and this will remain in effect.
How We Can Help
At O’Reilly Stewart Solicitors we understand that navigating these new SDLT changes is crucial to making informed property decisions. For buyers considering a property purchase in 2025, careful timing will be critical.
Our expert conveyancing team is ready to provide advice to help you understand how these changes will affect your purchase. Whether you’re a first-time buyer, an investor, or planning to move up the property ladder, we can guide you through the process with clarity and confidence.
For more information or to discuss your property plans, please get in touch with our team today by either using our website property info site chat or by calling our office on 028 90 321000.