First-time buyers and home movers will pay thousands of pounds more in stamp duty from next week after Rachel Reeves failed to announce an extension of current rates in her Spring Statement today. Stamp duty is a tax that is paid when you purchase a property over a certain price.
Whether you’re subject to paying stamp duty – and how much you pay – depends on if you’re a first-time buyer, or if you’re moving home. It also depends on if the property you’re buying will be your main residence, or a second property. Those purchasing a property in England and Wales have benefited from higher stamp duty thresholds since September 2022 – but these will go back down to their previous levels from April 1. Follow our Spring Statement 2025 live blog for the latest updates and to see how all the changes affect your money. What do you think of the Spring Statement? Email webnews@mirror.co.uk
If you’re a first-time buyer in England and Wales, you currently pay stamp duty if the property you’re buying is worth over £425,000 – but this will go back down to £300,000 from April 1. First-time buyers currently only benefit from reduced stamp duty rates if they buy a property worth £625,000 or less. This will reduce to £500,000 from April 1.
If you’re moving home, you currently have to pay stamp duty if the property you’re buying is your only home and is worth over £250,000. This will be reduced to its previous level of £125,000 from April 1. The latest figures from Rightmove suggest 74,000 buyers in England will miss this deadline. There are different stamp duty systems in place in Scotland and Wales.
Rightmove property expert Colleen Babcock said: “It’s extremely disappointing that the government have not used the Spring Statement as an opportunity to extend the impending Stamp Duty deadline for those currently going through the home-moving process. We estimate over 70,000 buyers are going to miss the deadline and complete in April instead, and a third of those are first-time buyers.
“Given the current challenges faced by first-time buyers, our data shows that a typical first-time buyer in Britain now faces average monthly mortgage payments of £940, a 59% increase compared with £590 per month five years ago. Over that same period rents have increased by 40% across Great Britain. So, while we welcome the government’s focus and investment to help build more affordable homes, we’re keen to hear more about how this, or other incentives, can help more first-time buyers.”
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Here are the current stamp duty rates in England and Northern Ireland that will remain in place until March 31, 2025:
Here is how stamp duty rates will change in England and Northern Ireland from April 1, 2025:
You can use our stamp duty calculator below to see exactly how much these changes could cost you, whether you’re moving home, or if you’re a first-time buyer. You pay stamp duty based on the portion of the property value where it is chargeable.
You need to pay stamp duty within fourteen days of completing a property purchase. Your solicitor can arrange to make the payment for you. It may also be possible to add stamp duty to your mortgage – but this does mean you are borrowing more which can affect your affordability.
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