When to Buy a Property in 2025 to Avoid Higher Stamp Duty Rates
- bes Accountancy Services
- Aug 1
- 4 min read
Understanding stamp duty rates in 2025 will be crucial for buyers who want to avoid paying more than necessary on their next property. While stamp duty has long been part of the home-buying process in England, changes introduced in the 2025 budget could result in thousands of pounds in additional costs if completion dates are mistimed by even a few days.
This guide explores the new stamp duty rules, the importance of timing, and how BES Accountancy can help you determine the best time to buy property in the UK.
Want to save on stamp duty in 2025? Call our director Besnik today: 07816264205
Why Stamp Duty Rates in 2025 Are Changing
As part of its strategy to rebalance the housing market and increase revenue from higher-value transactions, the UK government will introduce new stamp duty rates from April 2025.
These changes include:
A 5 percent surcharge on second homes and certain joint ownership purchases.
Adjustments to first-time buyer relief eligibility.
Removal of certain reliefs such as Multiple Dwellings Relief (MDR).
These changes will disproportionately impact buyers in London and the South East, where average property prices frequently exceed national SDLT thresholds.
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When Do the New Stamp Duty Rates Take Effect?
The new rates take effect from 6 April 2025, meaning buyers completing on or after this date will be subject to the updated charges. The key word here is completion, not exchange. If you exchange contracts before April but complete afterwards, you may still be liable for the new rates.
For this reason, knowing when to buy property in 2025 could be the difference between thousands in savings or higher tax bills.
How Much Could You Pay Under the New Rates?
Let’s say you’re purchasing a £600,000 property in London:
Before 6 April 2025: If eligible for first-time buyer relief, you pay £10,000.
After 6 April 2025: If relief is no longer available or thresholds change, your liability could jump to £20,000 or more.
These examples show how small changes in purchase timing could have large financial consequences.
Why Buyers Are Caught Off Guard
Most buyers plan around affordability, mortgage approval and availability of properties, not tax policy timelines. However, with the stamp duty rates 2025 set to shift so significantly, proactive planning is no longer optional.
Many mistakenly believe:
Thresholds rarely change.
SDLT is automatically calculated correctly.
First-time buyer relief is guaranteed if they have never bought before.
But the government has become more aggressive in how it defines eligibility, particularly for joint purchases and overseas ownership.
BES Accountancy uses tools like Xero and QuickBooks to help clients prepare property tax forecasts, file returns, and avoid costly surprises.
Best Time to Buy Property in the UK: A Strategic Guide
There is no single “perfect” time to buy, but in 2025, buyers should strongly consider aiming for completion before 6 April if they want to lock in current SDLT rates.
Other strategic considerations:
Q1 2025: Ideal time for exchanging contracts to beat the April deadline.
Late 2024: Engage with property accountants and solicitors early to manage legal timelines.
Post-April 2025: If you miss the window, review reliefs and calculate updated SDLT to avoid errors.
A property tax accountant in London, like BES Accountancy, can model your SDLT under both current and future rates to guide your decision.
What Makes the April Cut-Off So Important?
Unlike mortgage rates, which can fluctuate unpredictably, stamp duty changes are announced and scheduled well in advance. The April 2025 changes are already confirmed, giving buyers a rare opportunity to act ahead of time.
Once in effect, the new rates will:
Affect anyone buying a second home.
Impact buyers with complex purchase structures.
Limit certain reliefs even for first-time buyers.
This is especially relevant to buyers in Greater London, where even modest flats can breach existing thresholds.
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How BES Accountancy Helps You Avoid Overpaying
BES Accountancy is a leading property tax accountant in London, trusted by homeowners and investors nationwide. Founded in 2020 and led by certified bookkeeper Besnik Vata, BES has earned a reputation for efficiency, availability, and trust.
Our services include:
Stamp duty forecasting and scenario planning.
CGT and inheritance tax strategies.
Personalised SDLT relief eligibility checks.
Bookkeeping, VAT returns, payroll and more.
Real-Life Tax Timing Mistakes to Avoid
Assuming your solicitor will notify you of tax changes: Always consult with a tax specialist.
Exchanging contracts in March but completing in April: This can result in paying the new rate.
Underestimating joint ownership complexities: One party’s previous ownership can void relief.
These mistakes are avoidable with early intervention. Speak to BES Accountancy for a review.
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Additional Insights and Resources
Let BES Accountancy handle the paperwork while you focus on your priorities.
Call 07816264205 or visit us at our London office for a free consultation.
FAQ: Stamp Duty and Timing in 2025
1. When do the new stamp duty rates come into effect?
The new rates apply to completions on or after 6 April 2025.
2. Is it better to buy before or after the rate change?
Most buyers will save money by completing before the new rates take effect. BES can help you calculate your position.
3. What if I exchange contracts before April but complete after?
The date of completion is what determines the applicable SDLT rate.
4. How can BES Accountancy help with stamp duty planning?
We model different buying scenarios, confirm eligibility for reliefs, and help avoid compliance errors.
5. Is BES Accountancy only for London clients?
No. We serve clients across the UK, although our headquarters are in London.
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