Stamp Duty Land Tax (SDLT) is a tax that most buyers will pay when purchasing a residential property. When buying a property, a percentage of the property’s value is paid in tax on the completion date. As such, it is important for buyers to understand how the purchase price of the property affects the Stamp Duty rate and how much tax they will pay.

On 1 April 2025, SDLT rates on the purchase of houses changed. The government announced increased rates for properties priced at more than £125,000, new limits on first-time buyers' relief, and a lower nil-rate threshold. In practical terms, these changes to Stamp Duty tax rates and rules meant that many more people would pay higher taxes when buying a home, especially those purchasing second homes or buy-to-let properties. Experts expected that this could have a significant impact on the housing market in the UK.

Now that a year has passed since the Stamp Duty changes were introduced, the team at JMW examines the impact on first-time buyers, residential buyers who are already on the property ladder and others.

What Were the Changes to Stamp Duty and What Are the Current Rates?

On 1 April 2025, the SDLT rates changed for those buying a property as a main residence to the following amounts, which remain the current rates to this day:

For the most part, these standard rates remained the same as previous levels, but with the nil-rated band reduced from £250,000 to £125,000, and the portion from £125,001 to £250,000 added at a 2% tax rate. The reduced rates for first-time buyers also increased, as follows:

Rates for commercial property purchases also increased, and some reliefs or reduced rates were removed, although this is not reflected in the above tables. A solicitor can help you to understand the amount of tax payable based on your specific circumstances, as several factors can affect your liability and how much you will owe.

How Have the Stamp Duty Changes Affected the Market?

The introduction of these changes led to a flurry of activity, with many buyers looking to complete before they became law. After a temporary increase in sales in March 2025, when 149,940 residential properties in England were sold, there was a slump in April 2025, down to 44,030 sales. This was 33% lower than in April 2024, and reflects the period immediately after the increase came into effect.

However, this impact was not a long-term problem. After an initial slump in April 2025 and May 2025, the market settled and sales of residential properties increased from the previous year between June and October, showing an extra 4.5% in residential sales.

Contrary to some expectations, the growth of house prices did not slow down. House prices rose by 2.2% between November 2024 to November 2025. As such, it is safe to conclude that the rise in SDLT has not had a significant detrimental impact on the market despite the initial fears.

How Did the Stamp Duty Changes Affect First-Time Buyers?

While the new SDLT rates did not disrupt the overall growth of the housing market, they have slowed things down for first-time buyers.

The average property price for first-time buyers went up by around £20,000 between 2024 and 2025 and the average deposit for first-time buyers went up by around £4,000. Between 2023-2024, average house prices for first-time buyers went up by around £40,000 and initial deposits went up by around £10,000.

This indicates that the market has slowed down since the changes were brought into place. While other factors have contributed to this decrease, it is hard to ignore the role of the SDLT changes as a driving force.

Additional SDLT Rates to Consider

SDLT casts a wider net and, along with the changes outlined above, there are different SDLT rates for the following areas:

• New leasehold sales and transfers
• Higher rates for additional properties
• Rates if you’re not a UK resident
• Rates for corporate bodies
• Purchases that involve more than six residential properties in one transaction
• Shared ownership properties
• Multiple purchases or transfers between the same buyer and seller (linked purchases)
• Companies and trusts buying residential properties

All of this can be complicated, but working with an experienced solicitor is the best way to meet your tax liabilities and take advantage of any exemptions that are available. Even as these increases have come into effect, there remain allowances and exceptions that can limit SDLT liability and make a standard residential purchase more cost-effective. Depending on the nature of your transaction, it is sometimes possible to make substantial savings, even where the new SDLT rates apply.

The expert residential real estate solicitors at JMW have a wealth of experience in this area and, from the moment you begin to think about buying a house, we will help you to consider the financial and legal requirements to keep the process on track. Our experienced conveyancing solicitors will discuss the financial implications of the current SDLT rates with you before you buy and help you to budget accordingly. From there, we will take care of the process on your behalf and keep things moving efficiently.