The Government’s Stamp Duty rates in England are set to rise on 1st April 2025, so making your move before the deadline could save you thousands of pounds in Stamp Duty Land Tax – over £11,000 in some cases. Whether you’re a first time buyer or second stepper, new build homes could be the key to unlocking those savings.
Our latest blog explains stamp duty costs, how much money you could save and why new builds are a smart and timely choice to beat the clock and secure your dream home.
Contents
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What is stamp duty?
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When will stamp duty rise in England and how much stamp duty tax will I have to pay?
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Why buying with Cala Homes can help you save
1. What is stamp duty?
Simply put, stamp duty is a tax due when you buy a property in England.
You must pay stamp duty if you buy a property or land over a certain price.
The stamp duty rate then depends on the value of the property purchased and how it will be used, so it will vary for each homebuyer.
The tax is different if the property or land is in:
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Scotland - you pay Land and Buildings Transaction Tax
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Wales - you pay Land Transaction Tax if the sale was completed on or after 1 April 2018
2. When will stamp duty rise in England and how much stamp duty tax will I have to pay?
In 2022, the Government introduced relief on stamp duty. This relief ends on 31st March 2025.
If you make your move on or before 31st March 2025, you could make significant savings.
Buying after 31st March 2025, the threshold for no stamp duty will be lowered to £125,000 instead of £250,000.
For first time buyers, the nil rate stamp duty threshold will revert to £300,000 from April, instead of £425,000.
We’ve created a handy table to demonstrate the savings you could make below.
| |
On or before March 31st 2025 |
From April 1st 2025 |
Saving |
|
First time buyer stamp duty on property valued at £425,000* |
£0 |
£6,250 |
£6,250 |
|
First time buyer stamp duty on a home valued at £625,000** |
£10,000 |
£21,250 |
£11,250 |
|
Second stepper stamp duty on property valued at £550,000^ |
£15,000 |
£17,500 |
£2,500 |
3. Why buying with Cala Homes can help you save
With the deadline approaching, new build homes are key to helping all buyers save, and here at Cala we’ve got you covered with a wide range of incentives to help you make your dream home a reality:
- Move quicky: With our Ready for You homes, you could move in as little as four weeks, and because you'll be the first occupant, there's no need to wait on previous owners to secure their new home and vacate, meaning a quicker, smoother transition.
- Chain-free: Avoid the hassle of selling and let us take care of your current home through our Part Exchange service. You'll benefit from no frustrating, uncertain chains or agent fees. This service is invaluable for buyers looking to avoid the delays and uncertainties of traditional property chains, facilitating faster moves. T&Cs apply.
- Contributions towards your mortgage: With our Mortgage Pay, which can be found on selected homes, you could receive up to £12,000 towards your mortgage. T&Cs apply.
With the stamp duty holiday ending soon, purchasing a new build now can result in substantial financial savings, which could be particularly attractive for first time buyers. New build homes come with the latest fixtures and fittings, not to mention energy saving measures and a guarantee, ensuring buyers can move in without the hassle and expense of renovations or upkeep.
Beat the clock and move into your dream home before next year’s deadline. Speak to one of our sales consultants to find out how we can help you make your move.
For more information, visit our Stamp Duty page and use our Stamp Duty calculator.
*Based on stamp duty payable by a first time buyer on a home of £425,000 before and after March 2025.
**Based on stamp duty payable by a first time buyer on a home of £625,000 before and after March 2025.
^ Saving based on stamp duty payable on a primary residence valued at or above £250,000 before and after March 2025.
Use the Government Stamp Duty calculator to calculate what you will pay.
