Stamp Duty Changes You Need to Know About – What Property Buyers Should Expect in March 2025

As we move towards the end of March, there’s an important shift happening in the property market that every buyer should be aware of. In just a few days, the current Stamp Duty Land Tax (SDLT) reliefs will come to an end, and the thresholds for both first-time buyers and non-first-time buyers will revert to pre-2022 levels. This means higher costs for anyone purchasing property from April 1st onwards, and it’s crucial that you understand how this could impact your buying decisions.

For First-Time Buyers

If you’re a first-time buyer, you’re going to feel the impact of these changes more than most. Right now, the threshold at which you stop paying SDLT is set at £425,000. However, come April 1st, that will drop to £300,000. What does this mean for you? If you were considering a property around the £350,000 mark, you’re currently enjoying a zero SDLT rate. But after the change, you’ll be paying 5% of the purchase price over £300,000 – in this example, that’s £2,500 in SDLT. It’s a significant shift and one that could change the property you might have your eye on.

For Non-First-Time Buyers

For non-first-time buyers, the threshold will also be dropping from £250,000 to £125,000. This means that if you’re purchasing a property over this amount, you’ll be subject to SDLT once again. Take, for instance, a property priced at £200,000. Under the current system, you wouldn’t pay SDLT, but come April 1st, you’ll be looking at a bill of £3,750.

Market Activity and Increased Demand

With these changes just around the corner, we’ve seen a flurry of activity in the property market. Buyers are moving quickly to take advantage of the SDLT savings while they can, and as a result, we’ve seen a 9% increase in property sales this March compared to the same period last year. If you’re still considering whether to buy or wait, now’s the time to act.

What You Should Do Now

As we approach the deadline, I’d strongly advise that if you’re looking to buy, don’t delay. Here are a few tips to help you make the most of the situation:

1. Start your property search now – The sooner you start, the more likely you’ll be able to complete your purchase before the threshold changes.

2. Review your budget – With SDLT rates set to rise, you may need to adjust your budget or look at properties that are within the new limits.

3. Speak to a professional – It’s always wise to consult with a real estate agent and a financial advisor who can guide you through the process and help you make informed decisions.

We’ve all seen the impact that the SDLT holiday had on the market, but now it’s time to prepare for the next chapter. As a property professional, I know that being proactive and staying informed will give you the best chance at securing your next property on the best possible terms. Don’t let the changes catch you off guard – start planning today.

At Winfields, we’re always here to help you navigate these shifts in the property market, and we’re committed to making the process as smooth as possible. If you have any questions or need guidance, feel free to reach out. We’re happy to assist!

Thomas Winfield