Key Changes to SDLT Rates

For All Homebuyers (Main Residence)

The SDLT thresholds have reverted to their pre-September 2022 levels:​

• Up to £125,000: 0%
• £125,001 to £250,000: 2%
• £250,001 to £925,000: 5%
• £925,001 to £1.5 million: 10%
• Above £1.5 million: 12%​

Previously, buyers paid no SDLT on properties up to £250,000. Now, the 0% threshold applies only up to £125,000, increasing the tax burden on many transactions.​

For First-Time Buyers

First-time buyers have also seen changes:​

• Up to £300,000: 0%
• £300,001 to £500,000: 5%
• Above £500,000: Standard rates apply; no first-time buyer relief​

This is a reduction from the previous 0% threshold of £425,000 and the maximum property value for relief decreasing from £625,000 to £500,000.​

For Additional Properties and Investors

Purchasers of additional properties, such as buy-to-let investors, now face higher rates:​

• Up to £125,000: 5%
• £125,001 to £250,000: 7%
• £250,001 to £925,000: 10%
• £925,001 to £1.5 million: 15%
• Above £1.5 million: 17%​

This represents an increase from the previous 3% surcharge on additional properties.​

Market Impact

The anticipation of these changes led to a surge in property transactions in early 2025, as buyers aimed to complete purchases before the new rates took effect. This activity has since cooled, with many buyers now facing higher tax bills.​

In response, some sellers have adjusted their asking prices to accommodate the increased costs for buyers, particularly in regions like the South East and London.​

Planning Your Purchase

If you're considering buying property:

• Use the SDLT Calculator: The UK government provides an online tool to estimate your tax liability.
• Consult Professionals: Engage with estate agents and solicitors early to navigate the market effectively.
• Budget Accordingly: Factor in the increased SDLT when planning your finances.​