Measure
The government confirmed that the sun-setting of the temporary residential rates of SDLT (introduced by the previous government in 2022) will go ahead as planned on 31 March 2025. For transactions with an effective date on or after 1 April 2025:
The residential nil rate band will revert to £125,000.
The First-time Buyers’ Relief nil rate band will revert to £300,000.
The maximum transaction value for First-time Buyers’ Relief will revert to £500,000.
First-time buyers, and other home buyers in England and Northern Ireland.
From 1 April 2025.
Prospective buyers face a closing window of opportunity. Those hoping to benefit from the existing, more favourable, thresholds have just over 150 days to make their move. This is likely to fuel a surge in transactions in the short term, particularly in London and the South East where the impact on affordability is most pronounced. Come April, first-time buyers, home movers and those looking to downsize will face greater cost. Reimposing a £125,000 nil rate band for English property now feels a little hard to justify, as it excludes so few properties.