SDLT Changes in April 2025: First time Buyers What You Need to Know

First-Time Buyers

Currently, first-time buyers enjoy a nil rate of SDLT on properties up to £425,000. However, starting in April 2025, this threshold will be reduced to £300,000. This means that first-time buyers purchasing properties between £300,001 and £500,000 will now have to pay 5% SDLT on that portion of the purchase price.

Example: A first-time buyer purchasing a £450,000 property would pay £7,500 in SDLT, compared to £1,250 in SDLT under the current rules.

Market Impact

These changes could really shake things up in the housing market in the short term, and it could also speed things up, with sellers feeling the pressure to sell quicker to avoid these higher taxes being added to any property they buy. After 1st April we might even see property prices ease a little, especially in areas where first-time buyers are active.

The long-term effects will depend on various factors, including the overall economic climate and interest rates.

It is crucial for both buyers and sellers to carefully consider these changes and their potential implications when making property-related decisions.

Contact Heald's Residential Conveyancing Team

Contact our Residential Conveyancing team at Heald Solicitors on 01908 662277 for further assistance with the buying or selling your property.