More homebuyers will pay stamp duty in 2025, hitting house price growth by up to 1%, according to new analysis from Zoopla.

From April 2025, stamp duty rates in England and Northern Ireland will revert to previous levels, resulting in a 2% tax on sales between £125,000 and £250,000 for homebuyers and a reduced rate of relief from SDLT for first-time buyers. In total, 83% of homebuyers will pay more stamp duty from April 2025.

The return of the 2% rate will hit existing owners looking to move and buy a home in the £125,000 to £250,000 price range, where a third of buyers are currently searching. Homebuyers in this price band will see SDLT up to £2,500, the equivalent to 1% of the property value.

Richard Donnell, executive director at Zoopla, says: “The growing complexity of SDLT makes assessing its impact on market activity and pricing increasingly difficult. Whilst an additional stamp duty payment of £2,500 might be more manageable for those purchasing £1m homes, it’s a much bigger cost for those buying cheaper homes. Faced with this higher cost, home buyers will want it reflected in the price they pay for their home and will seek to make offers, keeping prices rises in check over 2025 and into 2026.”