Stamp duty calculator: new changes and rates coming in April 2025 - how much is it for first time buyers?

• From April 1, 2025, stamp duty thresholds in England and Northern Ireland dropped significantly
• First-time buyers’ nil rate threshold decreased from £425,000 to £300,000
• Home movers’ threshold was halved from £250,000 to £125,000
• Many buyers now face higher costs, especially those near the previous thresholds
• But some mortgage lenders are offering cashback deals to help offset the increased costs

From April 1, 2025, significant changes to stamp duty in England and Northern Ireland are set to impact homebuyers.

The adjustments are expected to add thousands of pounds to the costs paid by many, particularly first-time buyers and home movers, just as the housing market shows signs of slowing down.

But what exactly is changing from April 1, and what does it mean for homeowners and those looking to get onto the property ladder? Here is everything you need to know about it.

The key changes to stamp duty

One of the most noticeable shifts is the reduction of the "nil rate" threshold for first-time buyers, the property price limit up to which you don't have to pay stamp duty.

If the price of the home you’re buying is below this threshold, you don’t need to pay any stamp duty at all.

Previously, first-time buyers could avoid paying stamp duty on properties worth up to £425,000. But from April 1, this threshold has been slashed to £300,000.

Meanwhile, the threshold for home movers (those purchasing a new home while selling their previous one) has also been halved, from £250,000 to £125,000.

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Rightmove has calculated how this will impact different property price ranges, with the analysis showing that those looking at properties around £625,000, could be hit hardest financially.

The following figures show the property price, the stamp duty cost before April 1, the new stamp duty cost from April 1, and the increase in costs for non-first-time buyers, followed by the same breakdown for first-time buyers:

£125,000, £0, £0, £0, £0, £0, £0

£250,000, £0, £2,500, £2,500, £0, £0, £0

£425,000, £8,750, £11,250, £2,500, £0, £6,250, £6,250

£500,000, £12,500, £15,000, £2,500, £3,750, £10,000, £6,250

£625,000, £18,750, £21,250, £2,500, £10,000, £21,250, £11,250

£750,000, £25,000, £27,500, £2,500, £25,000, £27,500, £2,500

£925,000, £33,750, £36,250, £2,500, £33,750, £36,250, £2,500

£1,000,000, £41,250, £43,750, £2,500, £41,250, £43,750, £2,500

If you want to calculate how much stamp duty you’ll be required to pay when purchasing your first - or next - property, head to the Government’s SDLT Calculator.

What do the changes mean for first-time buyers and home movers?

The changes are part of an ongoing effort by the Government to adjust the tax system amid rising house prices and affordability concerns.

But the immediate impact on buyers is clear – particularly for those who had been relying on the higher thresholds to avoid stamp duty costs.

For first-time buyers, the reduction in the stamp duty threshold will mean that many previously eligible for tax relief will now face a bill.

According to Zoopla, the proportion of first-time buyers who will now need to pay stamp duty will nearly double from 21% to 42%. This is a stark increase, particularly for those looking to buy properties priced just under the old £425,000 threshold.

The new stamp duty changes will make getting onto the property ladder even more challenging. As property prices rise in some areas, particularly in the South, many first-time buyers may need to look further afield to find homes that fall within their budget.

For home movers, the impact is equally significant. The proportion of existing homeowners buying a new property as their main residence who will be subject to stamp duty has risen from 49% to 83%.

This sharp increase underscores the growing financial burden on those trying to step up the property ladder in an already expensive market.

Is it still possible to beat the deadline?

It's no longer possible to beat the stamp duty deadline since it passed at the end of March, with the new stamp duty changes taking effect on Tuesday, April 1.

Buyers who completed their transactions before the end of March would have been able to take advantage of the previous, higher thresholds to avoid or reduce their stamp duty costs.

According to HM Revenue and Customs (HMRC), an estimated 108,250 home sales were completed in February, marking a 28% increase from the same month in 2024.

But anyone completing a property purchase from April 1 onwards will be subject to the new, higher thresholds and will face higher stamp duty charges as a result.

Data from Rightmove suggests that more than 25,000 first-time buyers and 74,000 home movers in England missed out on the chance to close before the deadline, meaning they will now face the higher tax bills.

What does it mean for the housing market?

The changes will affect how much buyers can afford to offer on properties. Many will likely attempt to "split" the increased stamp duty costs with sellers, reducing the overall price they are willing to pay.

But with fewer buyers able to access affordable properties, competition may decrease in certain price brackets, potentially creating opportunities for buyers in the lower-end market.

Is there any support with stamp duty?

In response to the higher stamp duty costs, some mortgage lenders are offering cash incentives to help cushion the blow.

Yorkshire Building Society is offering up to £6,250 cashback for first-time buyers, while Nottingham Building Society is offering up to £5,000 cashback. Other lenders, like Skipton Building Society, are also providing cashback offers..

Some lenders are also easing mortgage affordability rules, allowing certain buyers to borrow more than they could previously.

Buyers can check their eligibility for support with the new stamp duty changes by contacting their lender directly.

Lenders often have resources and advisors who can explain how the changes might impact their mortgage application and whether they qualify for any financial assistance, such as cashback deals or better rates.

Lenders can also guide buyers on how to adjust their mortgage application to account for the new stamp duty costs and whether there are any specific programs or offers available to help offset the financial impact.

What do you think about the new stamp duty changes? How will they impact your homebuying plans? We’d love to hear your thoughts and experiences - drop a comment!