The UK property market in 2025
If you’re looking to buy or sell a home, it’s essential to have a clear understanding of the UK housing market. With changes to stamp duty, mortgage rates, and regional price fluctuations, we’re encouraging all our clients to consider carefully how to navigate the property market in 2025.
In this blog, we’ve highlighted the main changes affecting buyers and sellers in 2025. As always, our highly trusted team of conveyancing lawyers is on hand to help anyone who may be concerned about how the changes will affect their transaction.
Stamp Duty threshold in 2025
One of the most significant developments for buyers this year is the change to Stamp Duty Land Tax (SDLT) in England and Northern Ireland. As of 1 April 2025, the stamp duty threshold was reduced to £125,000. Here are the current stamp duty land tax rates:
| Value | Stamp Duty Land Tax rate |
| Up to £125,000 | Zero |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
Stamp Duty for first time buyers in 2025
First-time buyers now benefit from 0% Stamp Duty Land Tax on properties up to £300,000, with a 5% rate applying between £300,001 and £500,000. No first-time buyer relief is available for properties over £500,000.
Stamp Duty on second homes / buy-to-let properties
If you’re purchasing a second home or buy-to-let property, a higher surcharge of 5% now applies:
| Value | Stamp Duty Land Tax rate |
| Up to £125,000 | 5% |
| £125,001 to £250,000 | 7% |
| £250,001 to £925,000 | 10% |
| £925,001 to £1.5 million | 15% |
| Above £1.5 million | 17% |
You may wish to seek legal advice before proceeding with a property transaction involving SDLT – our expert conveyancers can advise you if you’re unsure how best to proceed.
Buying a house in 2025
Timing is important
It’s always worth looking at market trends, and speaking with qualified mortgage brokers to identify when the best time to lock into your mortgage is. We recommend consulting with property experts early in your journey to explore your options.
Consider the total cost, not just the asking price
The return of higher stamp duty thresholds and reduced first-time buyer relief now means your overall purchase cost may be higher than anticipated, so it’s important to factor this into your budgeting from the outset
Selling a house in 2025
Price competitively
With many buyers likely to negotiate below the asking price, setting a realistic price from day one is crucial. However, be mindful that overpricing can lead to delays or even failed sales. It’s essential to work with a trusted estate agent who knows the local area and maintains up-to-date market knowledge.
Use a proactive conveyancer – like Scott Bailey LLP
Buyers and sellers alike will benefit from working with an experienced conveyancer. A well-organised legal team can help reduce delays and improve the chances of a smooth sale – which is all anybody really wants. Take a look at our Google reviews if you want to find out what our clients are saying about us!
Present your property well
Whether you’re selling a cosy village cottage, a flat in the city, or a large house in the forest, presentation matters. Consider minor updates like tidying gardens, and having professional photos taken to help your listing stand out.
Download our guide to buying and selling your home:
Whether you’re buying your first home, moving house, or looking to sell, the property landscape in 2025 is being shaped by evolving financial, legal and economic conditions. Staying informed and working with trusted professionals is key to making confident decisions.
At Scott Bailey LLP, our experienced property lawyers are here to support your transaction every step of the way – from reviewing contracts to advising on Stamp Duty Land Tax issues.
Contact us today to speak to a solicitor about your next move.
