Stamp Duty increases and rule changes for April 2025

Stamp Duty changes mean that many buyers are now rushing to get transactions over the finish line before duty bills increase in April.

From April 1 2025 there are key rule changes including the threshold at which people start paying the tax will drop from £425,000 to £300,000 for first-time buyers, meaning that when buying a home worth £425,000 or more they will go from paying nothing to paying £6,250 on stamp duty.

Similarly the threshold is also lowering for home movers from £250,000 to £125,000 for home movers.

The end of the temporary threshold increases for Stamp Duty put in place in September 2022 may also see those looking to move house use the return of threshold limits as a negotiating factor to gain larger discounts to mitigate against the tax bill increase.

What is Stamp Duty?
Stamp Duty, or Stamp Duty Land Tax (SDLT), is a Government tax which is paid by the buyer of a property as a lump sum upon completion.

The tax applies to all property types, whether it be an apartment, house or bungalow. It applies to both freehold and leasehold homes and is payable regardless of whether you are buying your new house with a mortgage or outright with cash.

For those who already own a residential property in England worth £40,000 or more, and you buy another (or a part of one), from 1st April 2025, the SDLT will rise from 2% to 5% and the single rate charged when firms, and not future residents buy dwellings worth more than £500,000 will also increase from 15% to 17% .

Scott Clay, Head of Premier at mortgage experts Together says: “The flurry of activity in the market is a good start to 2025, as buyers respond to the pressure to beat the Stamp Duty deadline in April. The return of the old rates can, in some cases, make a property thousands of pounds more expensive, and with our own Residential Property Market Report estimating house prices will rise by 17% between 2025 and 2029, acting quickly is critical.

“Luckily, there is still time. To secure a completion before April, buyers need to ensure they have their finance in place, ideally a clean or no chain attached, approved mortgage in principle and have assessed all options available to them to ensure their property ambitions can become reality.”

Ensure your finances are in order
“Securing an Agreement in Principle (AIP) will confirm how much you can borrow from a lender before applying for a mortgage which will help you plan your budget effectively and support your property ambitions in the competitive market," he says.

"Although an AIP will show sellers you are ready to move quickly it is not binding, so make sure you have the other necessary legal documents in order.”

Exploring all the buying options available
With some moving forward with their property plans before the changes, those who may not have the necessary funds to hand for a multitude of reasons should consider all property finance options available to them including from specialist mortgage lenders.

If you require any assistance with your inventory requirements in the Oxford area including  Abingdon, Didcot, Wallingford, Witney, Woodstock & Burford please call me Julie Godard on 07557008203 or visit our website https://www.abbeyindependentinventories.co.uk