Stamp duty tax and the cost of moving a house in the UK (2025)
The UK has a high cost of living, with London being the most expensive city for property purchases. With the stamp duty changes effective from 1st April 2025, there will be significant shifts in the housing market.
In this blog, we will help you understand how stamp duty will impact the UK housing market and provide a detailed guide on how to budget effectively.
Stamp duty in 2025: what’s changed?
Stamp Duty Land Tax (SDLT) is a tax applied when purchasing property in the UK and Northern Ireland. The UK government has introduced new stamp duty rates, administered by HMRC, which vary for first-time buyers and those purchasing a second home.
New stamp duty rates effective from 1st April 2025:
Property Price | First-time buyer | Second-time buyer | Second property owner / investor |
Up to £125,000 | 0% | 0% | 3% |
£125,001 - £250,000 | 0% | 2% | 5% |
£250,001 - £300,000 | 0% | 5% | 8% |
£300,001 - £500,000 | 5% (on portion above £300,000) | 5% | 8% |
£500,001 - £925,000 | Standard SDLT rates apply | 5% | 8% |
£925,001 - £1.5M | 10% | 10% | 13% |
Above £1.5M | 12% | 12% | 15% |
Example: If you are a first-time buying a property for £295,000, the SDLT calculation would be
0% on the first £125,000 = £0
2% on the next £125,000 (£125,001 to £250,000) = £2,500
5% on the remaining £45,000 (£250,001 to £295,000) = £2,250
Total SDLT = £4,750
You can use this SDLT calculator to determine the exact amount payable.
Stamp duty and the moving costs in the UK (2025)
The UK is known for its high property prices. However, the prices vary significantly, with London averaging £685,847 over the past year, compared to £268,730 in Manchester and £250,106 in Birmingham, according to Rightmove.
With the new stamp duty rates taking effect from 1st April 2025, purchasing a home will become even more challenging, particularly with rising mortgage rates and additional costs like mortgage fees, deposits and property valuation charges.
For example, if you are a first-time buyer purchasing a property for £295,000, your Stamp Duty Land Tax (SDLT) calculation would be:
0% on the first £125,000 = £0
2% on the next £125,000 (£125,001 to £250,000) = £2,500
5% on the remaining £45,000 (£250,001 to £295,000) = £2,250
Total SDLT Payable = £4,750
To calculate your exact stamp duty amount, you can use the SDLT calculator.
In summary, the first-time property buyers benefit from SDLT relief, with no tax on properties up to £300,000 and a reduced rate up to £500,000. However, for any purchase above £500,000, first-time home buyers pay the same rates as second-time buyers.
Total moving costs: removal fees & other expenses
Buying a home is not the only expense in the UK. Moving house also comes with additional costs, including hiring removal services, storage providers, mail redirection and utility setup fees.
The cost of removal services varies depending on the size of the property and moving distance. Below is an estimated breakdown of removal costs across the UK:
Other costs to consider when moving home:
Legal fees: Conveyancing solicitors charge £800- £2,000.
Survey costs: Homebuyers report (£500), full structural survey (£1,000 and above).
Storage costs: Self storage unit starts at £18/week.
Mail redirection: Royal Mail charges from £35 for three months.
Utility setup fees: Broadband and energy providers may charge installation fees.
As one of the UK's leading removal companies, we have helped thousand of households move seamlessly into their new homes. Get your personalised quote today!
How to reduce your moving costs?
Negotiate removal quotes and compare companies.
Declutter before moving to reduce transport costs.
Check for any hidden costs with your removal service provider, such as extra packing charges, additional fees for handling bulky items, stair access surcharges, and long carry fees. Always request a detailed quote upfront to avoid unexpected expenses.
At Pickfords, we provide efficient moving services with competitive pricing, delivering a straightforward and reliable moving experience without compromising on quality. Request your free, non-obligatory quote today.
Final checklist: Planning a cost effective move in the UK
Budget for all costs: When buying a new property, consider stamp duty, renovation expenses, removal fees and other associated costs.
Get multiple quotes: Compare removal service providers. Make sure to consider service providers who have industry experience.
Set up utilities in advance: Avoid any last minute costs and service delays.