tamp duty changes taking effect on 1 April 2025 will make buying a home more expensive for many first-time buyers. These changes include a reduction in the threshold for stamp duty relief, increasing the tax burden on properties priced above £300,000. Acting early and planning strategically can help you minimise these additional costs. 

Understanding the changes 

Currently, first-time buyers pay no stamp duty on properties up to £425,000 and 5% on the portion from £425,001 to £625,000. From April 2025, the threshold will revert to £300,000, with 5% charged on amounts between £300,001 and £500,000. Properties priced above £500,000 will no longer qualify for any relief, a reduction from the current £625,000 limit. 

For example, buying a property for £625,000 before the deadline would incur a stamp duty bill of £10,000. After 1 April 2025, the same purchase would cost £21,250 in stamp duty—a significant difference. 

Steps to navigate the changes 

Act quickly 

If you’re planning to buy a home, start the process immediately. Completing a property purchase takes an average of five months, so aiming to finalise your transaction by 31 March 2025 could save you thousands. Working with experienced professionals, such as estate agents and solicitors, can help ensure a smooth and timely process. 

Understand your budget 

Determine how much you can afford to spend by using mortgage calculators and consulting with a broker. This will help you identify suitable properties and avoid unexpected costs. 

Explore first-time buyer schemes 

There are several government initiatives designed to help first-time buyers, such as mortgage guarantees and rate reduction schemes. These can make buying your first home more affordable, so explore your options to see what might apply to you. 

Secure a mortgage in principle 

Getting a mortgage in principle is an important step. It shows sellers and estate agents that you’re serious and financially prepared to move quickly when you find the right property. 

Focus on affordability 

If possible, look for properties priced below £300,000 to remain within the stamp duty-free range. This can help you avoid additional costs, especially in areas where prices are more affordable. 

Why preparation matters 

With stamp duty changes just around the corner, acting early is essential to avoid paying significantly more. By understanding the changes, preparing your finances, and making informed decisions, you can reduce the financial impact and secure your dream home in time. 

Contact us for expert guidance to make your first home purchase cost-effective