3 minute read

Stamp Duty Just Went Up – What It Means for First-Time Buyers & Landlords

Stamp duty in the UK has officially increased today (April 1st, 2025), and for many homebuyers—especially first-time buyers in London and landlords—this means higher costs when purchasing property. If you didn’t complete your purchase before the deadline, you may now be facing a larger tax bill than expected.

So, let’s break it down:

What’s Changed from April 1st, 2025?

• First-time buyers now only get stamp duty relief up to £300,000 (previously £425,000).

  • If you're buying a £400,000 home, you’ll now pay £5,000 in stamp duty (whereas before, it was £0).

  • If you’re buying a £550,000 home, your stamp duty jumps from £6,250 to £15,000—a £8,750 increase.

• Second home buyers & landlords are also feeling the hit:

  • The stamp duty surcharge on second homes & buy-to-let properties has already increased to 5%.

  • But there's a new tax band at £125,000, which means properties will now incur a 7% tax from this level.

• Overall tax thresholds have changed (see below).

New Stamp Duty Rates for Additional Properties (April 2025 Onwards)

These changes will hit buyers in London and the South East hardest, where property prices are much higher. The average first-time buyer in London now pays £9,250 in stamp duty, compared to £3,000 yesterday—a £6,250 jump overnight.

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What This Means for You (And What to Do Next)

If you're a first-time buyer who missed the deadline, you’ll need to factor in these extra costs before committing to a purchase. If you’re struggling to find an affordable home under £300,000 (which is rare in London!), let’s talk through your options.

If you're a landlord or second-home buyer, the higher tax rate means it’s more expensive to expand your portfolio—but there are still ways to make smart investment choices despite the changes.

What Should You Do Next?

Buying soon? Let’s discuss your best options.
Need a new investment strategy? Book a free call to go over your property game plan.
Wondering how much your property is worth? Use my instant valuation tool here.

The Bigger Picture – Will This Impact House Prices?

Whenever stamp duty changes, it shifts the market. We've already seen a surge in transactions in February and March as buyers rushed to beat the deadline. But now? Many buyers may hesitate, and this could lead to slower sales and potential price adjustments in the coming months.

For landlords, these tax increases add to an already tough environment, with rising mortgage rates and tighter regulations. However, rental demand remains high, meaning good investment opportunities still exist—it’s just about finding them smartly.

Need Help Navigating These Changes?

The market is shifting, and whether you're buying, selling, or investing, having the right strategy is crucial.