The rate is now 5% on the portion of a property's price between £300,001 and £425,000 for first-time buyers in England. Before 1 April 2025, that portion attracted 0%. The switch has cost buyers collectively £307 million more in SDLT (Stamp Duty Land Tax) in the weeks since the relief ended, according to Rightmove analysis.

What Changed and When

First-time buyer stamp duty relief had been a fixture of the market since 2017. In its most generous form, it set the zero-rate threshold at £425,000 - meaning a first-time buyer purchasing a property at that price paid no SDLT at all.

That relief expired on 31 March 2025. From 1 April 2025, the zero-rate threshold reverted to £300,000. The standard first-time buyer rates now apply above that level.

This applies in England only. Scotland operates its own LBTT (Land and Buildings Transaction Tax) and Wales has LTT (Land Transaction Tax), each with separate thresholds and rates.

What the Numbers Actually Mean for Your Liability

Rightmove's analysis shows the average extra cost per first-time buyer is £1,700 since the change came into force. The £307 million total reflects how many buyers have transacted in the period and the concentration of purchases in the price bands most affected.

A worked example makes the liability concrete. For a property worth £380,000:

- Before 1 April 2025: Zero SDLT on the full purchase price (within the £425,000 threshold). - From 1 April 2025: Zero on the first £300,000. Then 5% on the remaining £80,000 = £4,000 SDLT due.

For a property worth £425,000 - the old ceiling - the liability is 5% on £125,000, which equals £6,250. A year ago, that same purchase cost nothing in stamp duty.

These figures assume the buyer qualifies as a first-time buyer under HMRC's definition and that no other reliefs apply. Speak to your accountant to confirm your specific position before exchanging contracts.

How Buyers Are Responding

Higher upfront costs change the arithmetic of a purchase. A buyer needing to fund an extra £4,000 in SDLT on top of a deposit and legal fees may need to reconsider their target price band, save for longer, or negotiate harder on the purchase price.

The £300,000 threshold now acts as a natural staging post. Properties priced just below it carry no SDLT liability for eligible first-time buyers. Properties priced just above it attract a charge that rises with every pound of purchase price above that level.

Rightmove's data suggests the volume of first-time buyer transactions has remained substantial despite the higher costs - the £307 million collective bill reflects a market that has continued to move, not one that has stalled. Whether that pace holds through the rest of 2025 will depend on how buyers absorb the added cost alongside mortgage rates and broader affordability pressures.

If your purchase is in planning, you may wish to model your full SDLT liability at your target price before making an offer. The number that matters is your total upfront cash requirement - deposit, SDLT, and legal costs combined.