Stamp duty: four fifths of homeowners to pay

Four in five (83%) homeowners will pay stamp duty on a main residence. This is an increase from 49%, as the two percent rate between £125,000 and £250,000 returns. Less than a fifth, 17%, of homeowners will not pay any stamp duty on properties below £125,000.

That means that around half of home purchases over £250,000 will be paying an additional £2,500 in stamp duty from April 2025. The third of buyers who are buying a property between £125,000 and £250,000 will pay two percent on the purchase, up to a maximum of £2,500. According to Zoopla, this will generate an additional £900 million.

First-time buyers will pay on purchases over £300,000. This means that three-fifths (58%) will avoid the extra cost of buying. This, Zoopla says, will help those buying in areas with lower house prices. The amount of first-time buyers on the hook to pay will be the lowest in the North-East (2%), Yorkshire and the Humber (3%), Northern Ireland (5%), and the North-West (5%).

However, the amount of first-time buyers liable to pay stamp duty will double to 42%, hitting London and the South-East buyers in the £300,000 and £625,000 the hardest. It will add costs of up to £15,000 per purchase. Those buying at £350,000 will pay £2,500 per purchase, up from nothing, while those buying a £500,000 home will pay £10,000, up from £3,750.

Zoopla estimates this will generate an additional £200m in stamp duty. 

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