UK Stamp Duty Changes Raise Costs for Homebuyers as Market Faces Short-Term Slowdown

New thresholds effective April 1, 2025, double the number of first-time buyers paying stamp duty and increase costs, particularly in London and the South East.

Stamp duty thresholds in England and Northern Ireland have been reduced, with first-time buyers now paying tax on homes over £300,000, down from £425,000.
The proportion of first-time buyers subject to stamp duty has doubled from 21% to 42%, with London buyers facing an average increase of £6,250 in tax costs.
February 2025 saw a surge in home sales, up 28% year-on-year, as buyers rushed to complete transactions before the April 1 deadline.
The housing market is expected to remain subdued in the short term, with recovery anticipated by summer 2025 as borrowing costs stabilize.
Critics argue that the thresholds fail to reflect current property values, exacerbating affordability challenges for buyers in high-cost regions like London and the South East.