Stamp Duty Changes 2025: What Homeowners Need to Know

What Changed with Stamp Duty?

In April 2025, the temporary stamp duty thresholds that had been in place reverted to their previous levels. This means the amount you pay in stamp duty when purchasing a property has increased for many buyers.

The nil-rate threshold — the amount you can pay for a property before stamp duty kicks in — dropped back down, affecting both standard buyers and first-time buyers.

How Does This Affect First-Time Buyers?

First-time buyers previously benefited from a higher nil-rate threshold, meaning they could purchase a more expensive property without paying any stamp duty. With the reversion, that threshold has reduced, meaning some first-time buyers now face stamp duty costs they wouldn't have had before.

If you're a first-time buyer, it's worth factoring these additional costs into your budget from the outset so there are no surprises at completion.

What About Existing Homeowners?

If you're thinking about moving home, the stamp duty changes mean your purchase costs may be higher than they would have been a year ago. However, this doesn't affect you if you're remortgaging — stamp duty only applies when you're buying a property, not when you're switching your mortgage on your existing home.

For homeowners considering whether to move or improve, the higher stamp duty costs may tip the balance towards staying put and remortgaging to release funds for home improvements instead.

Remortgaging vs Moving: The Numbers

With stamp duty costs higher, more homeowners are choosing to remortgage rather than move. By releasing equity from your current home, you can fund renovations, extensions, or other improvements without the hefty transaction costs of buying a new property.

A capital raise remortgage lets you borrow against your home's increased value, often at much lower interest rates than personal loans or credit cards.