Stamp Duty Changes in 2025: What Home Buyers Need to Know Now

Here's What You Really Need to Know:

Big changes are coming to stamp duty in April 2025. If you're a first-time buyer, you might want to pay close attention. Currently, first-time buyers don't pay any stamp duty on homes up to £425,000. However, from April, this threshold will drop to £300,000. For other buyers, the general stamp duty threshold will decrease from £250,000 to £125,000. This means more buyers will need to factor stamp duty into their budget.

What Does This Mean for You?

If you're a first-time buyer:

• You might want to speed up your house hunting if you're looking at properties between £300,000 and £425,000
• Starting your search now might be cutting it close, as completing a purchase before April could be challenging
• You'll need to factor in potential stamp duty costs if you're buying after April

For the rest of 2025, we're seeing some promising signs. There's talk about potential interest rate cuts, possibly starting as early as February. This could mean more affordable mortgages, although Bank of England Governor Andrew Bailey reminds us that nothing is certain in today's economic climate.

Our take? While the stamp duty changes might seem challenging, especially for first-time buyers, there's still reason for optimism. House prices are expected to see modest growth, and potential interest rate cuts could help balance out some of the additional costs.

If you're planning to buy, we recommend:

• Starting your financial planning early
• Getting your mortgage approval in principle sorted
• Being realistic about completion timelines if you're hoping to beat the April deadline
• Considering properties slightly below your maximum budget to account for any tax changes