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3w ago

Stamp Duty Threshold Reductions Take Effect, Doubling Costs for Many Buyers

New thresholds for first-time buyers and home movers in England and Northern Ireland increase financial burdens, particularly in high-cost regions like London.

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House prices were flat month-on-month as the looming change to stamp duty dissuaded buyers towards the end of the month
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Overview

  • As of April 1, 2025, the 'nil rate' stamp duty threshold has decreased to £300,000 for first-time buyers and £125,000 for home movers, doubling the proportion of first-time buyers liable for the tax from 21% to 42%.
  • Home sales surged in February 2025, with 108,250 transactions recorded, as buyers rushed to complete purchases before the deadline.
  • Regional disparities are exacerbated, with only 9% of London homes now falling under the new £300,000 threshold, compared to 74% in the North East of England.
  • Lenders, including Yorkshire, Nottingham, and Skipton Building Societies, are offering cashback deals of up to £6,250 to offset increased costs for buyers.
  • The Bank of England reported a decline in February mortgage approvals, though experts predict a recovery in lending as the market adjusts to the changes.