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November 20, 2024
First time buyers are being urged to complete their purchase before the end of March 2025 or they could face paying thousands of pounds more due to stamp duty changes due to come into effect. In fact, some first time buyers’ bills could rocket by over £10,000. However, home movers could also face higher bills too. Here’s the latest on stamp duty changes and for details of all the taxes when buying a house, see our guide.
Changes to first time buyer stamp duty relief coming into effect on 1 April 2025 will mean stamp duty bills will go up for many first time buyers.
Currently, if you’re a first time buyer, you don’t pay stamp duty on properties costing up to £425,000. You’ll then pay 5% on the portion from £425,001 to £625,000. However, there’s no tax relief on properties over £625,000 and you must pay the standard stamp duty rates.
However, from 1 April 2025, the threshold at which first time buyers must start paying stamp duty will be reduced to £300,000. You’ll then pay 5% stamp duty on the portion from £300,001 to £500,000. And if the price is over £500,000 you cannot claim the relief.
These stamp duty changes are happening because the thresholds were hiked in 2022 as a temporary measure by the government to help first time buyers but will revert to their previous levels on 1 April 2025. Read more in our guide on First time buyer stamp duty.
Areas with the highest property values are already experiencing a rush to beat the stamp duty deadline, research by Rightmove suggests.
It found that in London, only 8% of homes for sale will be stamp duty free for first time buyers from April 2025, rising to 24% in the South East and 32% in the East of England.
These areas have seen an increase in first time buyer demand since the Autumn 2024 Budget, suggesting some buyers are rushing to avoid paying higher charges. In London, before the Budget, first time buyer demand was 28% ahead of last year – now, it is 31% ahead, the portal said.
While in the East of England, demand has increased from being 28% ahead of last year pre-Budget to 32% post Budget. And in the South East, the trend has moved from 23% growth pre-Budget to 24% post-Budget.
KEY INFORMATION
The amount that bills will increase due to these stamp duty changes will depend on the price of property. First time buyers in London and the South East are likely to be worst hit due to higher average property prices.
It currently takes an average of five months (151 days) to complete a property transaction, according to Rightmove. So if you want to buy your first home before the 31 March 2025 deadline, you’ll need to act quickly and hope to beat the average time to complete a purchase. Here’s how to get started:
Find out more information in our Guide to buying a first home.
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
No. Stamp duty changes coming into force in April 2025 will affect home movers too and in many cases will make it more expensive to buy a house.
Until 31 March 2025, stamp duty rates are:
| Purchase price | Stamp duty rate |
| Up to £250,000 | 0% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
However, from 1 April 2025, the stamp duty rates will be
| Purchase price | Stamp duty rate |
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
So if you buy a house for the average UK house price of £294,000 on or before 31 March 2025, your stamp duty bill will be £2,200.
But if you buy a house for £294,000 from 1 April 2025 onwards your stamp duty bill will be £4,700.
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
Paula Higgins, Chief Executive of the HomeOwners Alliance, says, ‘Buying a house is already expensive enough but these stamp duty changes could add thousands to the cost of buying a home, especially for first time buyers. So if you’re considering buying your first home, don’t hang around – or it could cost you much more than if you act now.’
March 25, 2025 
