Stamp Duty changes are coming. From 1 April 2025, the changes to Stamp Duty Land Tax as announced in the Labour budget, will commence. We run through what the changes to the thresholds are, including the changes for first-time buyers. We also look at what the stamp duty changes mean for property sales in Altrincham. Will they have any effect? Find out more…

The Stamp Duty Land Tax changes

The nil rate threshold for stamp duty on standard residential dwellings will decrease from 1 April, from £250,000 to £125,000 .

The new rates for stamp duty land tax will then be:
£0 – £125,000                0%
£125,001 – £250,000     2%
£250,001 – £925,000     5%
£925,001 – £1.5m          10%
Over £1.5m                   12%

Stamp duty changes for first-time buyers

For first-time buyers, the nil rate threshold will decrease from £425,000 to £300,000. And the maximum price of a property which can benefit from first-time buyer relief will reduce from £625,000 to £500,000.

So, for first-time buyers, from 1 April 2025, there will be no stamp duty to pay on a property if it is up to the price of £300,000. And there will be 5% payable on the portion between £300,001 up to £500,000.

There will be no first-time buyer relief available on properties beyond the price of £500,000.

What will these stamp duty changes look like in line with property prices?

The best way to highlight what the stamp duty land tax (SDLT) changes will look like for buyers is to look at some average prices for properties here in Altrincham.

The data gathered to show these examples has been obtained via Dataloft and PriceHubble whose property data services we subscribe to.

The average price of a detached property in Altrincham – £860,000.
Current (pre 1 April 2025) SDLT on this property – £30,500.
SDLT from 1 April 2025 – £33,000.

The average price of a typical 3-bed house in Altrincham – £578,000.
Current (pre 1 April 2025) SDLT on this property – £16,400.
SDLT from 1 April 2025 – £18,900.

The average price of a terraced property in Altrincham – £418,000.
Current (pre 1 April 2025) SDLT on this property – £8,400.
SDLT from 1 April 2025 – £10,900.

The average price of a flat or apartment in Altrincham – 243,000.
Current (pre 1 April 2025) SDLT on this property – £0.
SDLT from 1 April 2025 – £2,360.

In the main, as you can see by these figures, the average home sale will have an extra £2,500 in stamp duty land tax charges from April. There are very few properties in Altrincham which fall beneath the current £250,000 SDLT nil rate threshold. Anything on the market at this price is likely to be an apartment. Or a very rare find of a small property in need of renovation. And with the nil rate decreasing to £125,000, there will be little to no properties available in this area without stamp duty charges.

First-time buyers will be the hardest hit by the changes

Sadly, those most affected by these changes will be first-time buyers. As if saving for a deposit and getting a mortgage for some of the highest priced property in recent years isn’t enough!

And here in Altrincham, it’s even a struggle to find property that falls below the current nil rate stamp duty threshold for first-time buyers of £425,000. And when something does come up, it gets snapped up very quickly.

With the nil rate SDLT threshold for first-time buyers reducing to £300,000, the realistic options in this area at present will be few and far between. So, first-time buyers will need to factor in stamp duty costs on their home purchases. This could add to further buying delays as more time is required to gather these funds alongside a deposit.

Price slowdown expected

On a national level, property industry experts are talking of decreasing house prices with low buyer confidence and house sales slowing down once these stamp duty changes start. And understandably so as mortgage affordability is still an issue and economic uncertainty remains. If prices do tail off, then we can see this as an offset off sorts against the increase in the SDLT charges.

Thanks to the popularity of this area, Altrincham usually remains resilient against such changes. Our excellent schools, thriving town centre and access to green spaces all help. And when you look at the data we’ve shared, the SDLT changes will only add an additional £2,500 to property sales.

For first-time buyers, the reduction in the purchase price threshold will not doubt bring additional financial strain. However, we expect this group to compensate by saving for a little longer. Or they may delay any improvement works they hoped to carry out on their first home.

As ever, and especially here in Altrincham and the surrounding areas, we will have to wait and see how much the stamp duty changes will affect the local property market. Watch this space, and our social media channels where we will share updates with you on any significant developments locally.

As a local Altrincham-based estate agent, we care about the property market here in Altrincham. Contact us for advice or for a free valuation if you are looking to sell or let your home in Altrincham or the surrounding area. Call our professional team on 0161 941 4445.