Stamp duty relief for homes bought in England and Northern Ireland, introduced in 2020, came to an end in April 2025.
The change has pushed up the cost of moving for most buyers and could add thousands to the bill for first-time buyers, depending on the purchase price.
Now, with a few months of market data available, we explore how the end of the relief has affected property prices and transactions – and what it could mean for you.
How has stamp duty changed?
Stamp duty is a tax you pay when buying a property in England or Northern Ireland. The amount you pay depends on the price of the property, with higher rates applied to more expensive homes.
On 1 April, the government reduced the thresholds at which stamp duty becomes payable.
First-time buyers now pay stamp duty on any portion of a property’s price above £300,000, as long as the home costs £500,000 or less. Previously, no stamp duty was due on the first £425,000 of a property costing up to £625,000.
Stamp duty is calculated in bands, with first-time buyers paying 5% on the portion between £300,001 and £500,000.
Existing homeowners are also impacted, with the threshold at which stamp duty becomes payable halved from £250,000 to £125,000. Standard rates apply: 2% is charged on the portion between £125,001 and £250,000, and 5% between £250,001 and £925,000.
The equivalent taxes in Scotland (the Land and Buildings Transaction Tax) and Wales (the Land Transaction Tax) are unchanged.
- Find out more: stamp duty calculator
What’s happened since stamp duty relief ended
HMRC property transaction data has a two-month lag, which means we’re only just beginning to see how buyers responded to the changes. It will take more time to fully understand the market’s longer-term reaction.
Buyers rushed to complete purchases before the changes took effect, causing a spike in transactions in March. HMRC data shows 177,370 property sales that month – 104% higher than in March 2024 and 62% higher than in February.
Estate agent Savills said it was the second-highest monthly sales volume since 2006.
In April, transactions fell to 64,680 – down 64% from March and 28% lower than April last year.
May saw some recovery, with transactions up 25% on the previous month, but activity still lagged behind 2024, with 12% fewer sales than in May that year.
Savills noted that ‘while a dip was anticipated, the scale of the decline outpaced the earlier surge’.
The spike in sales before the deadline also drove up stamp duty receipts. Buyers paid £6.6bn in stamp duty between January and June 2025, a 21% increase on the same period last year, according to Coventry Building Society.
- Find out more: best mortgage rates 2025
What impact have the stamp duty changes had on prices?
House prices fell in April after the changes took effect and have yet to return to their March peak.
Land Registry data shows the average UK house price rose to £272,922 in March.
In April, the average house price fell by 2.6%. They increased slightly in May but remained below the March average recorded before the stamp duty changes.
Other house price indices, published by banks and property portals, also suggest prices continued to fall in June. Banks base their figures on mortgage data, while Zoopla combines sold prices, mortgage valuations and recently agreed sales.
Nationwide reported a 0.8% drop in June. Its chief economist, Robert Gardner, said: ‘The softening in price growth may reflect weaker demand following the increase in stamp duty at the start of April.’
Rightmove also recorded small monthly declines in June and July
- Find out more: what’s happening to house prices?
Why is the market still slow to recover?
The slowdown in buyer demand and a rise in homes for sale have both played a part in keeping prices down, according to Knight Frank.
Tom Bill, head of UK residential research said: ‘Following the stamp duty cliff edge, the number of new prospective buyers in the UK was down by a fifth versus the five-year average in the second quarter of the year. Meanwhile, new listings were up by 11% over the same period, creating an imbalance that has put downwards pressure on property prices.
‘There was an overhang of stock following the stamp duty deadline but the other reasons for higher supply include a growing number of landlords selling due to tax and legislative changes in the rental sector. Meanwhile, demand has been hit due to the UK’s deteriorating economic outlook.
‘The housing market always takes a few months to get back on its feet after a stamp duty change and transaction activity should continue to strengthen in the second half of the year. The biggest risk on the horizon is the Autumn Budget a rerun of the game of ‘guess the tax rise’ that caused hesitation last year.’
What should first-time buyers be aware of?
If you’re buying a property priced under £300,000, you won’t pay any stamp duty. But above that, it’s important to understand how much you’ll owe — and how close you are to key thresholds.
For example, a home priced at £499,500 would result in a £9,975 stamp duty bill. But at £525,000, that jumps to £16,250, as the relief no longer applies once the price exceeds £500,000.
With more homes on the market than buyers in many areas, first-time buyers may be in a strong position to negotiate, especially if they’re chain-free. However, that advantage could narrow in the coming months as activity picks up.
- Find out more: how much can you borrow for a mortgage?
What should home movers do now?
In a slower market, sellers may need to be more realistic on price to attract interest. It’s important to price your home competitively and choose an estate agent with a strong track record in your area.
There are some positive signs. Robert Gardner, Nationwide’s chief economist, expects activity to ‘pick up as the summer progresses, despite ongoing economic uncertainties in the global economy, since underlying conditions for potential homebuyers in the UK remain supportive’.
While Emily Williams, director of research at Savills, anticipates that ‘buyer demand will pick up heading into early autumn, particularly among first-time buyers and mortgaged home movers, driven by an expected base rate cut in August and a more competitive mortgage market’.
- Find out more: stamp duty seen as ‘biggest barrier’ to moving