The biggest changes impacting property owners, and prospective property owners, are the changes to the Stamp Duty Land Tax (SDLT).
What are the changes?
Stamp Duty Land Tax (SDLT) is a tax on property purchases, payable when the transaction is complete. The amount is dependent on the property value, whether you are a first-time buyer or not, or whether it is an additional property (not your main home).
The following table outlines the SDLT bands from 1 April 2025:
| Property Value | SDLT rate |
| Up to £125,000 | 0 per cent |
| £125,001 – £250,000 | 2 per cent |
| £250,001 – £925,000 | 5 per cent |
| £925,001 – £1,500,000 | 10 per cent |
| £1,500,001+ | 12 per cent |
How will the changes affect those who are buying or already own a second property?
Individuals buying an additional residential property in England and Northern Ireland now face a higher Stamp Duty rate.
Previously, this rate was three per cent above that of main residence purchases, but since October 31, 2024, it has increased to five per cent.
An increase in SDLT could deter prospective landlords from entering the market, as well as discourage current landlords from growing their portfolios.
This could lead to a decrease in the number of available rental properties and cause rents to rise.
This change also suggests that selling properties after March 2025 could become significantly more expensive. Buyers may factor in the higher tax costs, potentially leading to lower sale prices.
Landlords thinking about selling their properties should take action before April 2025 to avoid higher SDLT rates and possible declines in sale prices.
Given the time needed for completion, many landlords are turning to Landlord Sales Agency to begin the process now.
If you feel the latest changes will affect your property portfolio, it is important to consult the advice of an expert to ensure you protect your assets.
Get in touch with our team for guidance on how this change in SDLT may affect the expansion or sale of your property portfolio.
