Stamp duty changes have officially come into force for home buyers in England and Northern Ireland, and the impact of the new rates is already being felt. As of April 1, buyers, particularly first-time buyers, face higher stamp duty costs, with some property price ranges seeing a particularly significant increase. Property website Rightmove has calculated the financial impact at various price points, offering insight into where the changes could hit hardest.
The new calculations show that first-time buyers, in particular, could face more significant financial challenges, especially for homes priced at £625,000 and above. For those looking to purchase properties at this level, missing the April 1 deadline could be costly, as the stamp duty increase will be felt most sharply in this price range.
For first-time buyers, the previous stamp duty exemptions have been adjusted, and properties in the £625,000 to £1,000,000 price range now face considerably higher taxes. For example, the stamp duty on a property worth £625,000 for a non-first-time buyer has risen from £18,750 to £21,250. However, the rise is even more significant for first-time buyers, who will see their costs increase from £10,000 to £21,250 on the same property.
Rightmove’s calculations also highlight several other price points where the increase will be keenly felt. Below are the details of the previous and new stamp duty costs:
| Property Price | Previous Cost (Non-First-Time Buyer) | New Cost (Non-First-Time Buyer) | Increase (Non-First-Time Buyer) | Previous Cost (First-Time Buyer) | New Cost (First-Time Buyer) | Increase (First-Time Buyer) |
|---|---|---|---|---|---|---|
| £125,000 | £0 | £0 | £0 | £0 | £0 | £0 |
| £250,000 | £0 | £2,500 | £2,500 | £0 | £0 | £0 |
| £425,000 | £8,750 | £11,250 | £2,500 | £0 | £6,250 | £6,250 |
| £500,000 | £12,500 | £15,000 | £2,500 | £3,750 | £10,000 | £6,250 |
| £625,000 | £18,750 | £21,250 | £2,500 | £10,000 | £21,250 | £11,250 |
| £750,000 | £25,000 | £27,500 | £2,500 | £25,000 | £27,500 | £2,500 |
| £925,000 | £33,750 | £36,250 | £2,500 | £33,750 | £36,250 | £2,500 |
| £1,000,000 | £41,250 | £43,750 | £2,500 | £41,250 | £43,750 | £2,500 |
The most significant hikes in stamp duty are felt by non-first-time buyers, particularly for homes priced £625,000 and above. However, even first-time buyers will experience a sharp increase in their tax bills, especially in the mid- to high-end price brackets. For those looking to buy at the £625,000 threshold, the increase is £11,250, a steep jump from the previous £10,000 stamp duty cost.
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For homes priced at £1,000,000, the stamp duty for non-first-time buyers has risen from £41,250 to £43,750, while first-time buyers will pay an additional £2,500, bringing their total stamp duty bill to £43,750.
With these changes, many buyers may need to reconsider their budget or rethink their home purchasing plans altogether. The new stamp duty regime may have unintended consequences, especially for those on the cusp of higher tax brackets.
These increased stamp duties come as part of broader efforts by the government to adjust tax rates and ensure fairer housing policies. However, for many buyers, particularly first-time homebuyers, these increases are likely to be felt as an additional financial burden at an already challenging time for the housing market.
