How have the stamp duty changes have affected first-time buyers?
These stamp duty changes will have the most impact on first-time buyers. By reducing the nil rate threshold by £125,000 and reducing the maximum purchase price for which first-time buyers’ relief can be claimed by the same amount, it could make it even harder for some first-time buyers to get onto the property ladder.
Now first-time buyers won’t pay stamp duty on properties up to only £300,000, and they’ll only get first-time buyers’ relief on properties up to £500,000 (5% on properties £300,000 to £500,000).
Whereas, before the changes on 1st April 2025, if you were a first-time buyer you didn't pay any tax on properties up to £425,000, and if the cost of the property you’re buying is up to £625,000 you were also eligible for discounted rates (5% on properties from £425,001 to £625,000).
Previous first-time buyer stamp duty rates:
| Proportion of property value | Rate for first-time buyers |
|---|
| Up to £425,000 | 0% |
| £425,001 to £625,000 | 5% |
For example, if you’re a first-time buyer looking to buy a £525,000 house in England, you’ll start paying SDLT at £425,000. Your total charge would be £5,000.
Current first-time buyer stamp duty rates (as of 1st April 2025):
| Proportion of property value | Rate for first-time buyers |
|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
For example, if you’re a first-time buyer looking to buy a £400,000 house in England, you’ll start paying SDLT at £300,000. Your total charge would be £5,000.
Find out more about how the stamp duty changes will affect first-time buyers, and where in the UK is the most affected.
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