What do the new Stamp Duty changes mean for homebuyers?

Lower Stamp Duty thresholds mean first-time buyers have until April 2025 to save thousands, while second home buyers will have to pay higher taxes.

The 2024 Autumn Budget, announced by chancellor Rachel Reeves on 30th October, included updates that could affect you if you're planning to purchase a new home. 

Lower Stamp Duty Land Tax (SLDT) thresholds for first-time buyers mean that from 31st March 2025 anyone buying their first home will have to pay more in Stamp Duty. Meanwhile, those looking to purchase a second (additional) home, such as investors, have to pay a 5% on top of existing Stamp Duty rates - a move that has already come into effect. 

What does this mean for first-time buyers? 

If you’re looking to purchase your first home in the next 6 months, you could save thousands in Stamp Duty fees by acting before 31st March 2025. 

Currently, following a temporary measure put in place in 2022, first-time buyers are exempt from paying SDLT on properties priced up to £425,000. 

From the end of March 2025, however, this reverts back to the previous threshold of £300,000.

This means if you buy your first home after this date and it costs over £300,000, you will have to pay 5% Stamp Duty on the portion between £300,000 and £500,000.

If the property costs more than £500,000, you will have to follow the same rates as other home buyers without the Stamp Duty relief on the portion below £300,000.

Discover buying schemes available with Charles Church, that could let you buy your first home with a smaller deposit. 

Stamp Duty has risen for those purchasing a second home

As well as the changes that will affect first-time buyers, anyone looking to buy a second (additional) property, such as investors, will also have to pay more in Stamp Duty. 

As of 31st October 2025, buyers of additional properties such as investment properties or buy-to-lets will have to pay an extra 5% on top of the usual Stamp Duty rates. This is a rise from the previous extra charge of 3%. 

Matt Halder of Threshold Mortgages says this change could have a knock-on effect for people currently renting. 

"With rental costs already rising across the country, after yesterday’s announcement, we may find the supply of rental properties being reduced further, should investors delay or even cancel purchases.

"With this in mind, renters may look at alternative options for purchasing a new home. Lenders have been innovative with lending.  Banks such as Halifax and Nationwide have increased the amount first time buyers can borrow, with the latter offering up to 6 times income.  

"There are also schemes available, such as Own New Rate Reducer and Deposit Unlock, to help first-time buyers with small deposits get onto the property ladder sooner, as an alternative to renting."

Find out more about SLDT on additional properties here , or try out the Gov.uk Stamp Duty Calculator.