Stamp Duty: what you need to know about the latest changes
Last updated January 2026
4 minute read
Stamp Duty: what you need to know about the latest changes
Last updated January 2026
4 minute read
What is Stamp Duty?
Stamp Duty Land Tax is a tax that’s usually paid when you buy a home in England or Northern Ireland.
The amount you pay depends on the price of the property you’re purchasing, whether you already own a property and if you’re a first time buyer.
What changed in April 2025?
- Firstly, homebuyers haven’t had to pay Stamp Duty on the first £250,000 of a property purchase for a while, but this rate of relief halved from 1 April to £125,000.
- Similarly, first time buyers have been able to buy properties worth £425,000 or less and not be charged Stamp Duty, but the rate at which this relief ends has fallen to £300,000.
- Lastly, if you’re buying a second home, an extra 5% surcharge will still apply on top of the current Stamp Duty rates you’d pay on your first property.
- Firstly, homebuyers haven’t had to pay Stamp Duty on the first £250,000 of a property purchase for a while, but this rate of relief halved from 1 April to £125,000.
- Similarly, first time buyers have been able to buy properties worth £425,000 or less and not be charged Stamp Duty, but the rate at which this relief ends has fallen to £300,000.
- Lastly, if you’re buying a second home, an extra 5% surcharge will still apply on top of the current Stamp Duty rates you’d pay on your first property.
What does this mean for you?
If you’re looking to buy a property, you’ll need to factor in these higher costs. Because of this, it could be a good idea when you start your search to figure out how much you'll need to pay.
Stamp Duty calculators are available to help you work out the cost of this tax depending on the price of the property you’re buying. It’s also worth speaking to a mortgage advisor to help plan your budget ahead of time. This could help you get organised and work out if you'll have enough money set aside for the Stamp Duty costs your purchase will trigger.
What else should I consider?
With increased Stamp Duty rates, it could be worth finding out what type of support you might be able to get when it comes to buying a home.
You can speak to us or an independent financial advisor on the best approach. It’s also worth looking at different savings products that could help you grow your money to ensure you have enough to cover higher Stamp Duty fees in the future.
If you or a member of your family are a first time buyer, there’s a number of different accounts that can help you save for a home. Lifetime ISAs are one option. For every £4 you save, the government adds £1 and will contribute up to a maximum of £1,000 per year.
At Coventry Building Society, we offer a range of savings accounts, including the First Home Saver 2 account where individuals can save up to £1,000 per month for up to three years, with charge-free withdrawals subject to 60 days' notice, and get a £500 bonus if they take out a mortgage with us.
You should also find a reputable solicitor or conveyancer to help you with the legal aspects of your purchase. Think about shopping around and asking for quotes in advance, so you can both factor in their charges and find the best deal that keeps other costs within budget.
If you have a friend or family member who are first time buyers there are many additional costs to consider, here we have some information that could help them understand these costs more.
Helping you
Stamp Duty changes are likely to mean house purchases will cost you more from from 1 April 2025, but being aware of this and considering ways to mitigate these changes can help you avoid any surprises.
At Coventry Building Society, we’re here to help you navigate these changes and more by giving you what you need when it comes to buying your next home. Call us on 0800 121 8899 for support and to discuss how Stamp Duty could impact your next move.
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