Stamp Duty Land Tax (SDLT) is technically a buyer’s cost, not a seller’s. But the 2025 reversion — lowering thresholds back to pre-pandemic levels from 1 April 2025 — has materially reshaped UK buyer demand, and sellers are feeling the downstream effects a year on. This post explains the current position and what it means for selling decisions in 2026.
What changed in April 2025
From 1 April 2025, SDLT thresholds reverted to pre-2022 levels:
| Band | 2022–2025 (temporary) | From April 2025 |
|---|---|---|
| First-time buyer relief | Up to £425,000 (max property £625,000) | Up to £300,000 (max property £500,000) |
| Standard residential nil-rate band | £250,000 | £125,000 |
The temporary increases introduced in 2022 (under the mini-budget) and kept by the 2024 government as a transitional measure expired. The £500,000 nil-rate band that had benefited some first-time buyers dropped to £300,000; the £250,000 main nil-rate band dropped to £125,000.
The 3% additional-dwelling surcharge (for buy-to-let, second homes) continues unchanged.
What it means for buyers
The average UK first-time buyer now pays approximately £4,500 more in stamp duty than they would have done pre-reversion. Main-residence buyers above the £125,000 threshold now pay roughly £2,500 more on a typical transaction.
On average, this has meaningfully tightened buyer affordability at the £250,000–£500,000 price band — where a substantial proportion of UK transactions sit. First-time buyers have been disproportionately affected.
Downstream effect on sellers
Three observable patterns in 2026:
1. Longer time-on-market in the £250k–£500k band
Affordability-constrained first-time buyers have had to either reduce their target budget (shifting demand to slightly cheaper stock) or pause entirely. This has made properties in the £250k–£500k range slower to sell in many postcodes, with an average 2–4 week increase in time-to-offer compared with 2024 data.
2. Increased negotiation on asking price
Buyers factoring additional SDLT into their affordability calculations have been pushing harder on asking prices. Properties listed above conservative comparable-sale figures are achieving further reductions than in the 2023–24 market.
3. Reduced demand from second-home and buy-to-let buyers
The ongoing 3% surcharge plus the reverted nil-rate band has kept second-home and buy-to-let demand subdued. Coastal and holiday-let markets (Cornwall, Devon, parts of North Wales, the Lake District) have seen particular softening.
What it means for your sale timing
If you’re in the £250k–£500k band in 2026, you should:
- Set asking price realistically. Aspirational pricing was workable in 2021–22’s heated market; it isn’t now. Check three or four very recent comparable sales before committing.
- Expect 4–6 months to complete via open market in most areas. Longer in slower postcodes.
- Factor carrying costs into your decision. See our cash vs agent calculator for the honest maths.
- Consider the buyer profile your property appeals to — first-time buyers are more affordability-constrained than they were; trade-up buyers are less affected.
If you’re above the £500k price point, SDLT changes have had less direct impact on your buyer pool — though the general market softening from affordability constraints cascades upward to some degree.
If you’re selling a second home or buy-to-let, the 3% surcharge on buyers plus the reverted main threshold has narrowed your buyer pool further. Combined with Renters’ Rights Act pressures on landlords, this is one of the less favourable periods in recent memory to sell a mainstream buy-to-let on the open market.
What hasn’t changed
- Sellers pay no SDLT. You don’t pay it on your sale; the buyer does. SDLT affects sellers only indirectly through buyer demand.
- The 3% additional-dwelling surcharge remains in place — anticipated by some to be increased further in subsequent fiscal events but so far unchanged.
- First-time buyer relief still exists, just at lower thresholds.
Political outlook
The current government has indicated that the April 2025 reversion is intended to be permanent, not another transitional step. Further reforms to SDLT have been discussed publicly (simplifying the banded structure, separating the residential surcharge from the main rate) but none have been enacted. For sellers planning 2026 and 2027 sales, the current SDLT structure is likely to remain the operating assumption.
Related
If your sale has stalled
If you’re in the slower-moving £250k–£500k band and your open-market sale isn’t progressing, we buy directly for cash — typically 80–92% of market value, with completion in 7–14 days and no fees. Share your postcode for a written offer within 24 hours.