How Stamp Duty changes could cost first-time buyers more than £6,000

This April, Stamp Duty is changing – but what does that actually mean? To help combat any confusion, we’ve detailed below what Stamp Duty is and how buying before 1st April 2025 can save you thousands of pounds.

What is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax paid when you buy a property over a certain price, and the amount you pay depends on the cost of your new home. In 2022, a temporary change to Stamp Duty was announced to help make purchasing a home more affordable. The base threshold for existing homeowners was doubled to £250,000 and the threshold for first-time buyers was increased to £425,000, meaning that no tax was paid on homes up to these prices.

From 1st April the rates are changing, and these price thresholds are being lowered and reverted to pre-2022 levels.

What does that mean for first-time buyers?

If you’re a first-time buyer, these changes to Stamp Duty are likely to affect you the most. Currently, first-time buyers pay no Stamp Duty on homes costing up to £425,000 and pay 5% Stamp Duty on homes priced up to £625,000.

From 1st April, these price caps will drop to £300,000 and £500,000 respectively, meaning many buyers will be faced with Stamp Duty charges that they previously wouldn’t have needed to worry about.

I’m a first-time buyer, what savings can I enjoy if I buy before 1st April?

If you purchase your first home before the changes take place, you could save up to £6,250!

For example, if you and a partner (both first-time buyers) buy a home together at £425,000 before 1st April, you’ll have no Stamp Duty to pay. After 1st April however, the Stamp Duty would rocket up to a whopping £6,250.

On the opposite end of the scale, buying a home for £325,000 would mean no Stamp Duty payments before the changes, but from 1st April would mean a payment of £1,250.

By saving so much on Stamp Duty, you could increase your deposit, put the funds towards solicitor’s fees and moving costs, or boost your decorating budget and treat yourself to the furniture of your dreams.

What about second-time buyers?

Existing homeowners will also be affected by the Stamp Duty changes. Currently, second-time buyers pay Stamp Duty on homes priced over £250,000, but this threshold will be lowered to £125,000.

By purchasing a new Allison home before 1st April, second steppers could benefit from an average saving of £2,500.

On a home costing £255,000, for example, the Stamp Duty buyers would have to pay today is only £250, but once the Stamp Duty changes are in full force this will be bumped up to £2,750.

For those looking for a bigger property, if they were to purchase a home at £450,000 their Stamp Duty would rise from £10,000 to £12,500.

Interested? Secure your new Allison home today!

If the idea of saving thousands of pounds has your heart singing, don’t delay getting in touch with us, as you need to complete on a new home and move in by 31st March to benefit from the existing Stamp Duty rates.

Contact our sales executives today at your chosen development and learn which homes will be ready to move into by spring.

At Allison Homes, we have a wide range of fantastic homes available across the East of England and South West. Each of our homes have been carefully designed to cater to all types of lifestyles, whether you’re a working professional who needs to commute, part of a growing family, or seeking a space to call your own.

Find out more about our available homes, and take a look at the homebuying schemes we offer to see how else we can help you move in 2025.