Recent changes to Stamp Duty Land Tax (SDLT) that came into effect on 1 April 2025 mean the UK housing market is going through a shift. The landscape has changed for for buyers, sellers, and investors alike. When you’re looking to make informed property decisions in the current market, it’s crucial you do your research about what these changes might mean for you.
Understanding the Stamp Duty Changes
So, what’s changed?
The government has reverted SDLT thresholds to their pre-2022 levels. For first-time buyers, the nil-rate band has decreased from £425,000 to £300,000, with relief applicable up to £500,000. Home movers now face SDLT on properties valued over £125,000, down from the previous £250,000 threshold. Additionally, the surcharge for additional properties has increased from 3% to 5%.
Immediate Market Impact
Naturally, a lot of property deals will have been desperately trying to complete before these changes which caused surge in property transactions. This activity led to a temporary spike in house prices, followed by a decline. In April 2025, UK house prices fell by 0.6% month-on-month, marking the largest drop since August 2023.
Opportunities for Buyers
- Negotiation Leverage: With the market experiencing a slowdown, buyers may find themselves in a stronger position to negotiate. Sellers keen to move, that may have missed out on moving before April may be more open to price reductions or incentives.
- Lower Mortgage Rates: Lenders are offering competitive mortgage rates, with some below 4%, as the Bank of England is expected to cut the base rate from 4.5% to 4.25%. This environment can make borrowing more affordable for buyers as there is an incentive to get more people on the housing ladder in general.
- Reduced Competition: Because lots of people will have rushed to buy before the stamp duty changes this means there could be fewer buyers and less competition in the market. This can lead to lots more opportunities and options for buyers and sellers.
Advice for Sellers
Sellers should be aware of the current market dynamics and price accordingly – one of the best perspectives when selling is to open yourself to flexibility and be prepared for negotiations. Being competitive with your pricing, but allowing wriggle room can help to attract a wider pool of buyers. Remember to highlight trending and relevant features for the future, such as energy efficiency or potential for home offices – these can add to the value and overall appeal of your property.
The recent changes to Stamp Duty Land Tax have introduced new challenges and opportunities within the UK property market, but being able to calmly navigate them will stand buyers and sellers in good stead.
For more info and advice on buying and selling, get in touch with our team at Home EA today.
