The upcoming reduction in the Stamp Duty threshold, set to take effect at the end of March 2025, is expected to have a notable impact on the UK property market.

At the moment, buyers of homes worth less than £250,000 don’t pay stamp duty. The threshold is £425,000 for those buying their first property.

From the 1st April 2025, the Stamp Duty threshold will drop from £425,000 to £300,000 for first-time buyers.

Home movers will  have to pay 2% stamp duty on any property value between £125,001 – £250,000, 5% on any of the property’s value between £250,001 – £925,000, 10% on property valued between £925,001 – £1.5 million, and 12% on property valued over £1.5 million

This means more properties will fall within the taxable range, increasing the cost burden on homebuyers.

For many prospective homeowners, particularly first-time buyers and those purchasing lower-valued homes, this change could result in increased upfront costs. The reduction in the threshold means that a wider range of properties will be subject to Stamp Duty, leading to higher overall expenses.

The Property Team at THW are expecting the next couple of months to be a particularly busy period with prospective purchasers wishing to complete their Property purchase before the end of March.

Whilst we will aim to achieve as early a completion date as is possible, we cannot guarantee completion before the expiry of the SDLT relief on ​31 March 2025. If you are hoping to complete by 31 March you are advised to plan your finances accordingly to take this into account.

For more information contact one of our property team.