The Institute for Fiscal Studies, an independent economic think tank, has described the duty as “one of the most economically damaging taxes”.

In October, Kemi Badenoch said a future Conservative government would abolish stamp duty on the purchase of main homes.

What is stamp duty and who needs to pay it?
Stamp Duty Land Tax (SDLT) is a tax due if you buy a property or land over a certain price in England and Northern Ireland, external.

You have to pay the tax when you:

buy a freehold property

buy a new or existing leasehold

buy a property through a shared ownership scheme

take on a mortgage or buy a share in a house

The amount of stamp duty you owe depends on the cost of the property, whether it will be used for residential purposes, and whether you own any other property.

How much is stamp duty?
The current stamp duty rates are:

£0-£125,000 (£300,000 for most first-time buyers) = 0%

£125,001-£250,000 = 2%

£250,001-£925,000 = 5%

£925,001-£1.5m = 10%

£1.5m+ = 12%

Stamp Duty Calculator

The threshold for those buying their first property is £300,000 when buying a home of less than £500,000. If the price is over £500,000, first-time buyers cannot claim the relief.

Between September 2022 and the end of March 2025, the 0% threshold was more generous. Between these dates, buyers of homes worth less than £250,000 did not pay any stamp duty, while first-time buyers did not pay duty on the first £425,000 (when buying a home of less than £625,000).

If you already own a residential property worth £40,000 or more, and you buy another (or a part of one), you also have to pay an additional amount on top of the normal rates, external.

This rate is another 5% on properties worth up to £125,000, with higher rates for more expensive purchases.

Firms which buy dwellings worth more than £500,000 have to pay a single rate of stamp duty of 17%.

When do you have to pay stamp duty?
You have 14 days to pay stamp duty from the date of completion in England and Northern Ireland, external.

In Scotland and Wales you have 30 days from the point of purchase to pay the tax due.

If it takes longer, you could face a fine, or be charged interest on the amount you owe.

How do you pay stamp duty?
House buyers often pay via their solicitors, but you can also pay directly online, or by cheque or cash in many banks.

It is also possible to add stamp duty to mortgage loans and increase your debt to cover the cost of the tax, but you could end up paying significantly more in interest payments.

Durham Properties For Sale

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The draft Leasehold and Commonhold Reform Bill includes plans to cap ground rent at £250, ban the sale of new leasehold flats and give homeowners greater control over how their buildings are managed.

What is leasehold?
There are around five million leasehold properties in England and Wales, of which 70% are flats.

At the moment, the freeholder of a property generally owns the building and the land beneath it, outright and forever.

Leaseholders effectively buy the right to live in the property for a fixed period of time.

Leasehold flats are found in all sorts of properties – from converted Victorian houses to purpose built skyscrapers – and tend to be concentrated in big cities.

Scotland and Northern Ireland have different systems of property ownership.

What is ground rent and how are the rules changing?
Ground rent is the fee paid by leasehold homeowners for the land beneath their buildings.

It must be paid under the terms of their lease, and the amount due can double or increase in line with inflation at fixed intervals, which can make it difficult to sell or get a mortgage for a property.

Ground rents were abolished for most new residential leasehold properties in England and Wales in 2022, but remained for existing leasehold homes.

The government says approximately 3.8 million properties still attract ground rent across England and Wales, with homeowners collectively paying more than £600m in 2025. The English Housing Survey estimates the average annual ground rent in 2023/2024 was £304.

As part of the government’s reforms, external, ground rent will be capped at £250, before falling to a “peppercorn” rate – effectively zero – after 40 years.

The bill will now be scrutinised by MPs on the Housing Committee before making its way through Parliament, with the cap potentially coming into force in late 2028.

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Prices increased by 0.3% month on month in August – after a 0.4% rise in July and a 0.1% increase in June – pushing the average cost of a UK home to £299,331.

The rise was significantly ahead of the 0.1% expected by economists. However, the annual rate of growth slowed to 2.2%, down from 2.5% in July, according to Halifax. Economists had forecast growth of 2% in August.

“The story of the housing market in 2025 has been one of stability,” said the head of mortgages at Halifax, Amanda Bryden. “Since January, prices have risen by less than £600, underlining how steady the market has been despite wider economic pressures.

“While the wider economic picture remains uncertain, the housing market has shown over recent years that it can take these challenges in its stride.”

However, while the average price of a UK property continues to increase, in the south-west of England prices fell by 0.8% over the past year, the first nation or region to record an annual decline since the east of England in July last year. A 100% council tax premium on second homes in Cornwall was introduced in April, in a move that was expected to bring down property prices.

“With the number of listings, sales agreed, and stock levels higher than this time last year, and with some banks offering specific help to first-time buyers to take their first step on to the housing ladder, this is a sign that the housing market is holding firm,” said the Propertymark chief executive, Nathan Emerson.

However, Emerson said the government’s mooted plans to overhaul stamp duty and potentially make landlords pay national insurance contributions could cause some buyers to delay plans to move.

“The prospect of a stamp duty reform is a powerful incentive which may temper this usual seasonal surge in activity, at least until the dust has settled on the autumn budget,” said the Yopa chief executive, Verona Frankish.

The chancellor, Rachel Reeves, is scheduled to make her budget speech on 26 November.

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⭐⭐⭐⭐⭐ Going to miss this view, but thanks to the amazing team at Elite Estates and Lettings the apartment has a new owner. Even with a few bumps in the sale process and losing a buyer, Janet                                  and the team were phenomenal in their commitment to selling the property. They’re happy to go above and beyond and I can’t recommend them enough.

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⭐⭐⭐⭐⭐ Thank you once again for helping us with the sale of another property. Not only have you helped us, but a number of family members over the last few years and we wouldn’t hesitate                                          recommending your services. You have certainly had a positive impact on everyone’s position and we would like to say thanks again! Best wishes.

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Prices have hit another new record this May, jumping by 0.6% (+£2,335) to £379,517. However, this is the smallest increase in asking prices for homes coming on to the market that we’ve seen at this time of year since 2016.

Our property expert, Colleen Babcock, says: “It’s another new price record this month, but having seen a May price record for the last five years, it appears to be driven more by seasonal factors given that new buyer demand has slowed.”

UK House Prices: May 2025
Month Avg asking price Monthly change Annual change
May 2025 £379,517 +0.6% +1.2%
April 2025 £377,182 +1.4% +1.3%

Dip in new buyer demand after stamp duty increase
Although asking prices have hit another new record in May, the number of homes available for sale is at a decade-high, so there’s more choice for would-be home-buyers, which has limited price growth.

After the busier-than-usual March, when buyers in England and Northern Ireland rushed to beat the stamp duty deadline, demand from buyers dropped by 4% in April compared to a year ago – the first time this year that buyer demand has fallen below last year’s levels.

Despite this, demand so far this year is still 3% ahead of last year, and there are signs of a bounceback in May. The number of sales being agreed still running 5% higher than at this time last year, indicating that spoiled-for-choice buyers are still being tempted by the right property at the right price.

New properties coming to market remains at decade-high
The number of new properties coming to market is now 14% ahead of this time last year, creating a decade-high level of choice for buyers.

With new seller activity currently outpacing new buyer activity, sellers are having to work harder to secure buyers. This shift towards a more balanced market is good news for buyers but means sellers need to be more realistic about their pricing expectations to achieve a sale.

Colleen says: “In the current market, buyers may well have several similar homes to choose from in their area, and a home which appears over-priced compared to the competition may not get a second look. This month’s price increase being the lowest in May for nine years is a sign of a market that favours buyers.”

What’s happening with mortgage rates?
Mortgage interest rates are lower than they were at this time last year, and the much-anticipated second Bank Rate cut of the year could spur on further mortgage rate reductions from lenders.

The lowest available two-year fixed mortgage rate is now 3.72%, down from 4.75% at this time last year. This improvement, combined with average earnings growth that continues to outpace house price growth, should help support buyer activity as the year progresses.

Colleen says: “While we’re not expecting drastic reductions, any lowering of rates will be a boost to buyer sentiment and affordability. With a high number of sellers and a small dip in buyer demand, it’s worth reminding people out there thinking of coming to market that they need to work hard to attract buyer attention. Working with your estate agent to understand your local market and coming to market with a tempting price will give you the best chance of standing out.”

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Nearly seven in 10 homes (66.3%) listed for sale in February and March since 2012 go on to complete a sale, the most out of any month.

February also has the joint quickest time to find a buyer on average historically, alongside January, at 51 days for a typical home to find a buyer, closely followed by March and April at 52 days.

In good news for those who have already come to market or are perhaps thinking about coming to market a little later this year, April and January are just fractionally behind February and March as the best months to list a home based on the likelihood to complete.

It has been an encouraging start to the year for buyer activity, which is positive news for sellers considering coming to market. After the first full month of the year, the number of potential buyers contacting agents about homes for sale is up by 8% compared with the same period last year, and the number of sales being agreed is up by 15%.

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Residents groups have called on ministers to pass secondary legislation needed to enforce the Leasehold Reform Act, which was voted through with cross-party support.

The act would ban developers from selling new houses as leaseholds, make it cheaper to extend a lease, increase the standard lease length to 990 years and make it easier for leaseholders to take control of managing their buildings, among other measures.

But much of it needs to be enforced by secondary legislation, which is unlikely to need another parliamentary vote.

Despite promising in the king’s speech to enact the act “quickly”, the government has not yet done so as it approaches 100 days in office. Ministers have said recently that leasehold reforms are “highly complex”, prompting concerns among campaigners that the process has slowed down.

Sebastian O’Kelly, the chief executive of the Leasehold Knowledge Partnership, said: “There is no reason for Labour to dawdle on reforming leasehold into the oblivion it deserves … The government also needs to bring in the secondary legislation allowed by [Michael] Gove’s act, to reform enfranchisement and bring in standard format service charge accounts.”

Harry Scoffin, the founder of the campaign group Free Leaseholders, said: “Leaseholders voted for change and an end to the cost of living crisis. That’s why the king’s speech commitments to ‘quickly’ activate the provisions of the Leasehold and Freehold Reform Act 2024 and publish a draft leasehold and commonhold reform bill to finish the job are vital.

“The law is there and a number of policies can be switched on now.”

A spokesperson for the housing department said: “The government will bring the outdated leasehold system to an end. The legislation to do so is a priority for us, which is why it was in our first king’s speech.

“We will act quickly to provide homeowners with greater rights, powers and protections over their homes by implementing the provisions of the Leasehold and Freehold Reform Act 2024.”

Reform of the leasehold system has been an ambition for multiple governments, but meaningful change has proven largely elusive. In 2022-2023, there were 4.8 million leaseholders in England alone, according to government figures, three-quarters living in flats.

Gove, the former housing and communities secretary, promised to end what he called the “feudal” leasehold system altogether, but instead brought a package of reforms to give leaseholders more power within it.

Gove’s act was passed in the dying days of the Conservative government with overwhelming parliamentary support, though Labour said it would go further when in government.

Since coming to office, Labour has enacted minor technical parts of the act. But it has not done so for its more major changes, including the ban on new leasehold houses and a separate provision removing the threat for leaseholders of having to pay the freeholders’ legal costs in any dispute.

Leasehold reform is also rising up the agenda for many Labour MPs, especially those in urban constituencies.

Joe Powell, the Labour MP for Kensington and Bayswater, said: “There were some useful steps forward in the recent legislation but it doesn’t go far enough. The government should now take steps to get the implementation of that legislation right while simultaneously preparing wider legislation to finally bring the entire system to an end.”

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Ongoing cost of living pressures are likely to have contributed to the large amount of coverage and speculation the Budget has received in recent weeks. Mortgage rates remain high, with our recent study showing that the average first-time buyer mortgage payment is £350 higher than five years ago. And household energy bills, while down from their 2022 peak, rose by 10% this month under the latest energy price cap.

We recently surveyed over 34,000 people to find out what they wanted to see from the new government. An overwhelming majority of renters (60%) said they wanted to see more support for first-time buyers, while simplifying the home-buying process was the most important thing for existing home-owners.

What changes were announced for housing in the Autumn Budget?
Housing announcements included £5 billion government investment to deliver Labour’s housing plan, with a £500 million boost to the Affordable Homes Programme. Investment is planned for sites across the country, such as Liverpool Central Docks, with 2,000 new homes and a transformation of the waterfront.

There will also be £25 million put towards the delivery of 3,000 energy-efficient new homes across the country, with a target of 100% of these being affordable.

Capital Gains Tax on residential property will remain unchanged.

The government has also pledged to engage with industry on plans to make the Mortgage Guarantee Scheme permanently available to support lending at 95% loan-to-value.

What’s happening with stamp duty?
There was no mention in today’s Budget of the extension to the current stamp duty relief for first-time buyers, which is due to end in March 2025.

Stamp duty is a form of tax paid to the government when buying property or land. And the amount buyers pay varies based on the cost of the property, and whether you’re buying a home to live in, or an additional home.

The stamp duty surcharge for those buying second homes, such as landlords buying properties to rent out, is set to rise by 2% from 31 October 2024, increasing from 3%, to 5%.

Our property expert, Tim Bannister, says: “Increasing stamp duty on additional home purchases means that, based on the average asking price for a home, a landlord could face an additional charge of more than £7,000 from tomorrow. In the short-term, some landlords may need to pause for thought, but in the longer-term we expect it becomes another charge that landlords become accustomed to considering.”

The previous Conservative government adjusted stamp duty thresholds until March 2025, which meant that home-movers would pay lower stamp duty fees, and in many cases (mostly for first-time buyers), meant no stamp duty to pay at all. There were no announcements around an extension to the current elevated thresholds, meaning these are set to drop back at the end of March 2025. Tim says: “With the rate at which no stamp duty is charged for home-movers due to fall from £250,000 to £125,000, anyone purchasing a property over this amount could face paying up to £2,500 more in stamp duty land tax. Meanwhile, the threshold rate at which first-time buyers do not pay stamp duty is likely to fall from £425,000 to £300,000. If a first-time buyer buys a property at the average UK price of £370,759 they will pay £3,538 in stamp duty from March 2025, compared with nothing now.”

“We may now see a rush of buyers, particularly those purchasing for the first time, either bringing their plans forward or trying to get their deal done before charges go up. It currently takes a lengthy 152 days on average to complete a property transaction once a sale is agreed, which would mean agreeing a deal tomorrow to complete on time. While this is an average and many will be hoping to complete more quickly, it highlights that those who are hoping to avoid higher charges will need to act quickly”, Tim adds.

The number of properties affected by the change in stamp duty thresholds varies by region. You can take a look at the percentage of homes currently free from stamp duty for people buying their first home, and how that will change after March 2025.

Capital Gains Tax remains unchanged
We saw some trends emerge in the housing market in the run up to the Budget, off the back of several anticipated changes. One of these talked-about changes was an increase to Capital Gains Tax, which could have seen landlords pay increased tax on any income made from rental properties.

Earlier this year we saw a record number of former rental homes for sale as some landlords made the decision to sell their properties as a result of the rumoured tax change, along with other additional costs for landlords that have grown over the years. However, today’s budget has confirmed that the current rates of Capital Gains Tax on residential property will remain unchanged.

What’s happening in the housing market right now?
We’ve seen strong levels of activity in the typically busy autumn season, and lots more people looking to get on with home moves than we saw in the more muted market of 2023. The number of sales agreed is up 29% compared to the same time last year, while the number of people sending enquiries to estate agents about homes for sale is up 17%. On top of that, buyers will also find more choice of homes, with the number of homes for sale up 12%.

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Data released by Halifax, Britain’s biggest mortgage lender, showed that prices climbed by 0.3% last month, extending a streak of rising prices that began in July. The month-on-month increase matches the 0.3% rise recorded in August.

It means that the price tag of the typical UK home edged higher by £859 in cash terms to £293,399 – just shy of the £293,507 peak set in June 2022, three months before the then prime minister Liz Truss’s disastrous mini-budget.

On an annual basis, prices rose 4.7%. That is slightly higher than the 4.3% recorded in August, but still the highest rate of growth since November 2022.

The housing market has been given a leg-up by the Bank of England, which in August slashed interest rates for the first time in four-and-a half years from 5.25% to 5%. It has led to a renewed mortgage price war among commercial lenders, which have been cutting their own mortgage rates in a bid to capture a larger share of the market after months of relatively sluggish growth.

Some, such as Nationwide building society, are also raising the borrowing cap for first-time buyers, allowing some to take on mortgages worth up to six times their earnings, in order to attract new customers.

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Giving more detail to a plan first outlined in Keir Starmer’s party conference speech in October, Rayner will tell a housing conference that Labour will strongly support private developers who create high-quality and affordable housing.

Speaking at the event in Leeds, the Labour deputy leader, who is also shadow housing and levelling up secretary, will link the plan with the new towns created under Labour during the postwar building boom. The new versions are part of a wider pledge by the party to oversee the construction of 1.5m new homes during a first term in office.

Under the plan, Rayner would appoint a new towns taskforce of independent experts to select possible sites, with factors to consider including local views, plus a suitably high demand for new housing and the prospect of jobs and transport infrastructure.

The process would be opened to bidding from councils. In a planned timetable the taskforce would make recommendations within six months, with the list of projects confirmed within 12 months and homes being built during a first term.

While the post-second world war New Towns Act put in place the process for 32 new towns, the Labour proposals would be for what are described as “a handful”, with the precise number depending on bids and viability.

Extracts of Rayner’s speech released in advance say: “Developers who deliver on their obligations to build high-quality, well-designed and sustainable affordable housing, with green spaces and transport links and schools and GPs’ surgeries nearby, will experience a new dawn under Labour.

“But those who have wriggled out of their responsibilities for too long will be robustly held to account.

“Labour’s towns of the future will be built on the foundations of our past. The postwar period taught us that when the government plays a strategic role in housebuilding, we can turbo-charge growth to the benefit of working people across Britain.”

Labour argues that planning applications are falling in England, saying that between October and December 2023, district planning authorities had 9% fewer applications than the same period a year before, and made decisions on 12% fewer.

Separately, a cross-party thinktank has argued that Labour could fund mass construction of new homes for social rent by raising money from what it described as a “fairness tax” on other aspects of the property market.

It estimated this could raise up to £4bn a year, enough to triple the current rate of social home building. In 2023, slightly more than 9,500 social rent homes were built in England, with more than 22,000 lost to the sector from being sold or demolished.

Richard Holden, the Conservative party chair, said Labour “tried to enact this policy last time they were in office and completely failed – failing to build even one new town and overseeing the lowest level of housebuilding in peacetime since the 1920s”.

Holden said the government was confident it would meet its 2019 manifesto target of building a million new homes by the end of the current parliament.

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