Enter your details and click Calculate Stamp Duty to see your SDLT, effective rate, and band-by-band breakdown.
For guidance only. Always verify SDLT liability with HMRC or a solicitor. Rates correct as of April 2025.
Stamp Duty on a £425,000 Property (2026)
£425,000 was previously the maximum price at which first-time buyers paid zero stamp duty under the temporary thresholds. Since 1 April 2025, the FTB nil-rate band has returned to £300,000, meaning first-time buyers at £425,000 now pay £6,250 in SDLT — a significant change.
SDLT Breakdown at £425,000 by Buyer Type
| Band | First Time Buyer | Standard | Additional / BTL |
|---|---|---|---|
| £0 – £125,000 | £0 | £0 | £3,750 |
| £125,001 – £250,000 | £0 | £2,500 | £6,250 |
| £250,001 – £300,000 | £0 | £2,500 | £4,000 |
| £300,001 – £425,000 | £6,250 | £6,250 | £10,000 |
| Total SDLT | £6,250 | £11,250 | £24,000 |
Before vs After: FTB at £425,000
| Period | FTB SDLT at £425k | FTB Nil-Rate Band | FTB Price Cap |
|---|---|---|---|
| Sep 2022 – Mar 2025 | £0 | £425,000 | £625,000 |
| From Apr 2025 | £6,250 | £300,000 | £500,000 |
First-time buyers at £425,000 face a £6,250 increase in upfront costs compared to the temporary rates. This is the single biggest threshold change affecting FTBs.
Impact on £425k Buyers in 2026
The £6,250 SDLT bill at £425,000 has real consequences. For a first-time buyer saving a 10% deposit (£42,500), adding £6,250 in SDLT means £48,750 in total upfront cash — before solicitor fees, surveys, and removal costs. This is approximately 12 months of additional saving at £500/month.
Some FTBs are now considering properties at £300,000 or below to stay within the zero-SDLT threshold. Others are negotiating lower purchase prices with sellers who understand the changed tax landscape.
The Lifetime ISA (£450,000 property price cap) still covers a £425,000 purchase, providing up to £1,000/year in government bonus towards the deposit — but not towards SDLT.
Plan Your £425k Purchase
- FTB Calculator — confirm your relief entitlement and see how FTB rates compare to standard at £425,000.
- Deposit Calculator — a 10% deposit is £42,500. See your savings timeline and how a LISA bonus helps.
- Affordability Calculator — check if you can borrow enough for a £425k property based on your salary and outgoings.
- Mortgage Calculator — estimate monthly repayments on a £382,500 mortgage at current rates.
- Moving Costs Calculator — total budget: £42.5k deposit + £6.25k SDLT + £2k+ legal fees + surveys + removals.
✅ SDLT calculations verified against HMRC rates, March 2026. This page is for guidance only. Confirm your eligibility for FTB relief with a solicitor.
Common Mistakes First-Time Buyers Make at £425,000
- Assuming FTB relief means zero stamp duty. At £425,000, first-time buyers pay £6,250 in SDLT. The £300,000 nil-rate threshold only covers the first portion — the remaining £125,000 is taxed at 5%. Budget accordingly.
- Not realising joint buyers must both be first-time buyers. If you are buying with a partner who already owns property, neither of you qualifies for FTB relief. The entire purchase is taxed at standard rates, costing £8,750 instead of £6,250.
- Stretching beyond £500,000 and losing relief entirely. FTB relief only applies to properties up to £500,000. If your purchase price is even £1 above this threshold, you lose the relief completely and pay standard SDLT of £12,500.
- Ignoring Help to Buy ISA and Lifetime ISA bonus limits. A Lifetime ISA provides a 25% bonus on savings up to £4,000 per year, but the property must cost £450,000 or less. At £425,000 you qualify, but be aware if negotiations push the price higher.
- Forgetting to declare FTB status to your solicitor. Your conveyancer must tick the correct box on the SDLT return. If they file it as a standard purchase by mistake, you will be overcharged £2,500 and need to apply for a refund.
5 Steps for First-Time Buyers Purchasing at £425,000
- Save your deposit and claim available bonuses. A 10% deposit on £425,000 is £42,500. Maximise your Lifetime ISA bonus (up to £1,000/year) and check whether your employer offers a salary sacrifice savings scheme.
- Get a mortgage agreement in principle. Lenders typically offer 4–4.5 times your household income. For £382,500 borrowing (90% LTV), you generally need a combined income of around £85,000–£95,000.
- Find your property and make an offer. Let the agent know you are a first-time buyer — sellers often prefer FTBs because there is no chain. This can give you negotiating leverage on price.
- Instruct a solicitor and confirm your FTB relief. Ensure your conveyancer is aware of your first-time buyer status from day one so they apply the correct SDLT rates on the return. Provide ID and proof of no prior property ownership.
- Exchange, complete, and file your SDLT return. On completion, your solicitor transfers funds and files the SDLT return within 14 days. Your £6,250 SDLT payment is included in the completion statement.
First-Time Buyer vs Standard Buyer: Total Cost Comparison at £425,000
See how FTB relief reduces the total upfront costs compared with a standard residential buyer at the same price.
| Cost | First-Time Buyer | Standard Buyer | FTB Saving |
|---|---|---|---|
| SDLT | £6,250 | £8,750 | £2,500 |
| Deposit (10%) | £42,500 | £42,500 | — |
| Legal fees | £1,500 | £1,500 | — |
| Survey | £600 | £600 | — |
| Moving costs | £900 | £900 | — |
| Total Upfront Cost | £51,750 | £54,250 | £2,500 |
Did You Know?
Pro Tips for First-Time Buyers at £425,000
- HMRC confirms: you qualify as a first-time buyer only if you have never owned a residential property anywhere in the world. Even inheriting a share of a property or owning abroad can disqualify you.
- Mortgage brokers recommend: considering a 5-year fixed rate to protect against interest rate rises. On a £382,500 mortgage at 4.5%, your monthly payment is approximately £2,120 — locking this in provides five years of budget certainty.
- Estate agents advise: mentioning your FTB status in your offer letter. Sellers value chain-free buyers and may accept a slightly lower offer from a first-time buyer over a higher offer from someone in a chain.
- Financial advisors suggest: using a Lifetime ISA to boost your deposit by up to £1,000 per year in government bonus. If you have been saving for four years, that is £4,000 in free money towards your £425,000 purchase.
Potential Savings for First-Time Buyers at £425,000
FTB Relief Saving
First-time buyer relief saves you £2,500 compared to standard SDLT rates at £425,000. You pay £6,250 instead of £8,750 — enough to cover your solicitor's fees.
Lifetime ISA Bonus
Four years of maximum LISA contributions gives you £4,000 in government bonuses. Combined with your FTB SDLT saving, that is £6,500 back in your pocket on a £425,000 purchase.
Negotiate £25,000 Off the Price
Reducing the price from £450,000 to £425,000 saves £25,000 on the purchase plus £1,250 in SDLT. The combined saving of £26,250 is equivalent to over a year of mortgage payments.
Stamp Duty FAQs
Everything you need to know about SDLT rates, deadlines and reliefs for 2025/26.