Stamp Duty Changes: Act Now Before the March Deadline
If you’re thinking about buying a home, now is the time to act. The current Stamp Duty rules are changing at the end of March, and this could mean higher costs for homebuyers.
What’s Changing?
To help buyers during tough economic times, the government temporarily raised the Stamp Duty threshold, allowing many people to pay little or no tax on their purchase. However, from April, these benefits will end, and Stamp Duty rates will return to previous levels.
Right now, first-time buyers don’t pay Stamp Duty on homes up to £425,000, with a reduced rate on properties up to £625,000. From April, this tax-free limit will drop to £300,000, meaning more buyers will have to pay.
Impact on First-Time Buyers
If you’re a first-time buyer, this change means you could face extra costs if your property is above £300,000. This, on top of deposits and legal fees, could make buying more expensive.
| Purchase Price | Stamp Duty Until March | Stamp Duty From April |
| Up to £425,000 | 0% | 0% up to £300,000, then 2% on £125,000 – £250,000, then 5% on the amount above £300,000 |
| £425,001 – £625,000 | 5% on the amount above £425,000 | 5% on the amount above £300,000 |
| Over £625,000 | Standard home mover rates apply | Standard home mover rates apply |
For example, if you buy a £400,000 home now as a first-time buyer, you pay no Stamp Duty. But after March, you could face a £5,000 tax bill. Acting now could save you a significant amount.
Impact on Home Movers
If you already own a home and are looking to move, these changes could also affect you. The general Stamp Duty threshold will still be lower than before the pandemic, but buyers of properties over £500,000 will see higher costs.
| Purchase Price | Stamp Duty Until March | Stamp Duty from April 2025 |
| Up to £125,000 | 0% | 0% |
| £125,001 – £250,000 | 0% | 2% |
| £250,001 – £925,000 | 5% on the amount above £250,000 | 5% on the amount above £250,000 |
| £925,001 – £1.5m | 10% on the amount above £925,000 | 10% on the amount above £925,000 |
| Over £1.5m | 12% on the amount above £1.5m | 12% on the amount above £1.5m |
If you’re thinking of moving, it may be best to do so before the changes take effect to avoid extra costs.
What Should You Do?
If you’re planning to buy, it’s worth moving quickly. Mortgage rates are stabilising, and house prices remain competitive, so now could be the best time to secure your home before these changes increase costs.
At Prospect Tree Mortgages, we’re here to help you find the best mortgage deal and guide you through the process. We can ensure you’re in the strongest position before the March deadline.
Don’t Wait—Act Now
With only a few weeks left before the Stamp Duty rules change, now is the time to explore your options. Whether you’re a first-time buyer or moving home, we can help you make an informed decision and secure the best deal.
Get in touch with Prospect Tree Mortgages today to discuss your plans before the window closes.
Your home may be repossessed if you do not keep up repayments on your mortgage. the information contained within was correct at the time of publication but is subject to change, 17.02.2025. Sources: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
What’s Next?
If you’re thinking about moving home, remortgaging, or buying your first property, now is a great time to review your mortgage options. At Prospect Tree Mortgages, we’re here to help you understand your choices and find the best mortgage for your situation.
Get in touch with our expert advisors today to discuss how this base rate cut could benefit you. We aim to ensure you make the most of the opportunities available.
Call us at 0800 8620 840 or visit our website at www.ptmortgagesltd.co.uk to learn more.
Your home may be repossessed if you do not keep up repayments on your mortgage. the information contained within was correct at the time of publication but is subject to change, 06.02.2025.
If you’d like to learn more about mortgage products and how we can help you, please don’t hesitate to get in touch with our team. We’re here to help you navigate the ever-evolving world of mortgages and guide you toward a brighter, greener home.