If you plan to buy your dream home soon, time is of the essence if you want to save thousands.
Changes to the Stamp Duty Land Tax (SDLT) rates are on the horizon, and these adjustments could impact your budget. Here’s a breakdown of the current and future SDLT rates and why you should act quickly.
Current SDLT Rates
For first-time buyers, you currently pay no tax on the first £425,000 on properties up to £625,000 making it an excellent time to step onto the property ladder.
As of today, the current SDLT rates in England and Northern Ireland are:
Owning a Single Property |
Another Property |
Up to £250,000: no tax
|
Up to £250,000: 5%
|
£250,001 to £925,000: 5%
|
£250,001 to £925,000: 10%
|
£925,001 to £1.5 million: 10%
|
£925,001 to £1.5 million: 15% |
Over £1.5 million: 12%
|
Over £1.5 million: 17% |
Future SDLT Rates (01 April 2025)
The changes coming in April mean higher costs for many buyers, especially those purchasing properties above £250,000.
For first-time buyers (now only applicable when buying a property up to a maximum of £500,000), you will pay no tax on the first £300,000, and 5% between £300,001 - £500,00.
From the 01st of April 2025, the new SDLT rates for all will be:
Owning a Single Property |
Another Property |
Up to £125,000: no tax
|
Up to £125,000: 5%
|
£125,001 to £250,000: 2%
|
£125,001 to £250,000: 7% |
£250,001 to £925,000: 5%
|
£250,001 to £925,000: 10% |
£925,0001 to £1.5 million 10%
|
£925,0001 to £1.5 million 15% |
Over £1.5 million: 12%
|
Over £1.5 million: 17% |
Why Act Now?
The impending increase in SDLT rates could add thousands of pounds to your home-buying costs. For example, purchasing a property worth £295,000 under the current rates would cost £2,250 in SDLT. Under the new rates, this rises to £4,750 — an additional £2,500.
You can find out how much SDLT you are likely to pay using this SDLT Calculator.
What You Can Do
To avoid these higher costs, consider:
- If you want to get moving and have a property to sell, but aren’t on the market yet, book you free valuation now. Don’t delay.
- If you are in the process of purchasing a property, ensure your transaction is completed before the deadline of 31 March 2025 to benefit from the current rates. Be sure to employ proficient and recommended local solicitors who are proactive in completing timely transactions.
- Speaking to a recommended Mortgage Advisor: They can help streamline your application process and speed up approval times.
- Ensure your Estate Agent employs specialist chain managers who will drive all parties involved and expedite your sale/purchase in time. Without this, the situation will likely drift like a rudderless ship.
The clock is ticking for house hunters looking to save on Stamp Duty. By acting now, you can secure your new home at the current, more favourable rates. Don’t wait until it’s too late — take action today and make your move before the changes come into effect!