Full breakdown of property prices hit by April’s stamp duty hike | UK | News

From Tuesday, April 1, certain home buyers will face increased stamp duty fees. Property website Rightmove has analysed the potential impact across various property price brackets.

The numbers indicate that first-time buyers in England and Northern Ireland, where stamp duty applies, could face significant financial pressure if they purchase homes priced around £625,000 and miss the deadline. Richard Donnell, executive director at Zoopla, commented: “Home buyers will expect to reflect this extra cost in their offers, typically looking to split the cost with the seller.

“Overall, the amounts are not large, but the overall impact will keep house price growth in check over 2025.” Mr Donnell noted that housing market activity continues to rise despite the end of stamp duty relief, reports Devon Live.

He added: “Zoopla’s latest data shows sales agreed up 5% year-on-year, with many more homes for sale. There is a stamp duty hangover effect in London where first-time buyers face the highest increase in costs of buying. We expect sales to grow 5% over 2025 to 1.15 million.”

Starting from Tuesday, home buyers making offers might ask sellers to share the burden of increased stamp duty costs. From April 1, discounts on nil rate stamp duty will be reduced.

The zero-rate threshold for first-time buyers will drop from £425,000 to £300,000, while for home-movers, it will be halved from £250,000 to £125,000. This stamp duty applies in England and Northern Ireland.

The figures reveal the current property price, stamp duty, the projected stamp duty from April 1, and the increase in charge. The same data is also provided for first-time buyers:

In February, Zoopla reported that the percentage of first-time buyers in England and Northern Ireland required to pay stamp duty is set to double starting in April. The company projected that the number of first-time buyers subject to this tax will rise from 21% to 42%.

The proportion of current homeowners purchasing a new primary residence who must pay stamp duty is expected to climb from 49% to 83%, according to Zoopla’s findings. Recent data from HM Revenue and Customs (HMRC) indicated a surge in sales as buyers rushed to meet the impending deadline.

February saw a bustling property market with around 108,250 home sales, representing a substantial 28% spike compared to the same month last year and a healthy 13% increase from January this year. Tom Bill, Knight Frank’s head of UK residential research, said: “The jump in February proves that nothing moves the UK housing market quite like a change in stamp duty.”

OnTheMarket’s chief, Jason Tebb, chimed in with his observations too, noting: “Increased stock, as sellers try to take advantage of the spring market, means buyers have more choice than has been the case for a while. This is putting them in a stronger negotiating position and they remain price sensitive.”

As Tuesday looms, Rightmove’s number crunchers warn of the significant impact the impending alterations could have on London’s first-time property hunters looking to sidestep stamp duty. Alarmingly, their data predicts that a meagre sub-10% (actually just 9%) of homes in the capital will linger below the fresh £300,000 nil rate threshold from April 1 – starkly contrasted by the current 27% under the soon-to-be outdated £425,000 limit.

But it’s not all doom and gloom for would-be homeowners, as Nottingham Building Society steps up with tempting new mortgage deals offering up to £5,000 cashback. Skipton Building Society has also shared an array of fresh cashback offers.

Last Friday, Santander UK announced that it has relaxed its mortgage affordability criteria following a recommendation from the Financial Conduct Authority (FCA) for lenders to tailor their rates to better serve customers.

As a result, some borrowers may qualify for loans ranging from £10,000 to £35,000 more than before, based on their specific situations and in accordance with affordability assessments and loan-to-income ratios.