Stamp Duty Changes 2025: Everything You Need To Know
As of 1st April 2025, the temporary Stamp Duty relief introduced in 2022 officially comes to an end. As such, a new set of rates and thresholds are now in place. Whether you’re planning to buy your first home, sell up and move on or expand a property portfolio, understanding these changes is key to making confident, informed decisions.
So, what’s different now? Who’s affected most? And what should you keep in mind if you’re navigating the market post-change? Let’s take a closer look.
First Things First: What Is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax you pay when purchasing property or land in England and Northern Ireland. It’s calculated based on the price of the property and, importantly, on your buyer status. First-time buyers, home movers and those purchasing additional properties all face different rates.
Since 2022, many buyers have benefited from temporary SDLT relief designed to keep the market moving during uncertain economic times. But with that relief now rolled back, we’ve returned to the original thresholds, meaning higher tax bills for many buyers.
What’s Changed?
Under the new rules now in effect:
- The nil-rate threshold for standard residential buyers has dropped from £250,000 to £125,000. This means you’ll now start paying Stamp Duty on any property over £125,000.
- First-time buyer relief still exists, but the maximum threshold has been lowered. Buyers now pay no SDLT on the first £300,000 of a purchase, down from the previous £425,000. Above that, 5% tax is charged on the portion up to £500,000. Properties over £500,000 are no longer eligible for first-time buyer relief.
- Buyers of additional properties, such as second homes or buy-to-let investments, continue to pay a 3% surcharge on top of standard rates. However, with the lower nil-rate band, that surcharge now applies sooner, making investment purchases more expensive than they were just a few months ago.
To put this in real terms: a first-time buyer purchasing a £350,000 home in Bath, who would have previously paid no SDLT, now faces a £2,500 tax bill. For home movers and investors, the impact can be even more pronounced depending on the value of the property.
What Does This Mean for Buyers?
If you’re currently house hunting, the shift in Stamp Duty rates could affect your budget and your timeline. With less tax relief available, it’s now more important than ever to factor SDLT into your overall costs.
For first-time buyers, this might feel like a setback. But don’t be discouraged; there’s still relief available for properties under £300,000, and for those slightly above that level, the tax burden remains manageable with proper planning.
Home movers may also need to reassess their budgets. If you’re upgrading to a larger home or relocating to a pricier part of town, Stamp Duty could now play a bigger role in your financial decision-making than it might have a few months ago.
And if you’re a buy-to-let investor, the increase in upfront costs might mean re-evaluating whether to purchase now, wait, or look at different types of properties with stronger long-term returns.
How Might This Affect the Market?
It’s early days, but we’re already seeing the ripple effects of the changes across the property market.
In the lead-up to the deadline, there was a clear spike in activity as buyers rushed to complete before the new rates kicked in. Now that the changes are live, things may temporarily slow down as people adjust their expectations—and their finances.
Some buyers might delay their move or shift their sights to lower-priced homes. Others may simply factor the new tax into their budgets and carry on. In the longer term, house prices may stabilise slightly, especially if demand cools in response to the increased cost of buying.
That said, demand in Bath remains strong, especially for well-located, energy-efficient homes. The city continues to attract a mix of professionals, families and investors – an underlying demand that tends to keep the market buoyant, even in the face of tax changes.
What Should Buyers Do Now?
If you’re planning to buy in 2025, don’t let the new SDLT rules put you off. But do go in with your eyes open.
Start by working out exactly what your Stamp Duty liability would be based on your price range. There are plenty of online calculators that can help, but if in doubt, ask your estate agent or solicitor for a breakdown. It’s better to know upfront than to be surprised down the line.
You should also factor SDLT into your overall moving budget, alongside legal fees, surveys, mortgage costs, and moving day expenses. With all the numbers on the table, you’ll be in a much better position to act quickly when you find the right property.
And remember—timing still matters. If you’re close to completing, make sure your solicitor is working efficiently, and don’t be afraid to chase up paperwork. The smoother the process, the better your chances of securing your ideal home, even in a busy market.
What About Sellers?
For those selling, the SDLT changes are important too, even though you’re not the one paying the tax.
Buyers are now more cost-conscious, and the increased tax burden might affect how much they’re willing (or able) to offer. That doesn’t mean prices will plummet—but it does mean being realistic and flexible could work in your favour.
Understanding how buyers are thinking is half the battle. If you’re listing your home now, consider how the new tax rules might shape their decisions. Can you highlight features that offer great value or help them see the long-term benefits of the property?
Working with an experienced local agent can also give you a clearer picture of how the market is shifting and what buyers are currently prioritising.
Zest: Here to Guide You Through Every Step
At Zest, we’re here to help you make sense of the new Stamp Duty rules – whether you’re buying your first home, selling a family property or looking to invest. Our team has in-depth knowledge of Bath’s property market, and we can offer tailored advice on how the changes might affect your budget, pricing or timeline.
We’ll work with you to make sure no hidden costs catch you off guard, and we’ll connect you with trusted solicitors and mortgage advisers who can keep things moving efficiently.
In a market that’s evolving fast, having the right support on your side can make all the difference. Get in touch today.
