Government Policy Changes Impacting Property
Stamp Duty Changes in 2025
One of the biggest upcoming changes is the reversion of Stamp Duty Land Tax (SDLT) thresholds. The temporary tax relief introduced in 2022 ends on 31 March 2025, which means from April:
- The tax-free threshold for home purchases will halve, dropping from £250,000 to £125,000.
- The first-time buyer nil-rate band will fall from £425,000 to £300,000.
For many buyers—especially those purchasing between £250k and £500k—this means higher stamp duty costs. As a result, there’s likely to be a rush to complete sales before the deadline.
After April, higher tax costs could dampen market activity, particularly for first-time buyers who lose some relief. There’s speculation that the government may extend or revise these thresholds, but for now, buyers are watching closely to see what happens.
Support for First-Time Buyers
The Mortgage Guarantee Scheme, which supports 95% loan-to-value mortgages, has been extended until June 2025. This allows first-time buyers with small deposits to access low-deposit mortgage deals, though borrowing costs remain high.
In addition, Shared Ownership and Help to Buy replacement schemes are gaining traction. While the original Help to Buy scheme ended, new shared equity initiatives and Lifetime ISAs are now being promoted to help bridge the deposit gap for young buyers.
With affordability still a major concern, further government support measures are possible, and many industry experts expect homeownership policies to become a key focus in the next election.
Rental Reforms and Landlord Sell-Offs
The government’s proposed Renters’ Reform Bill is causing a stir in the buy-to-let market. Key proposals include:
- Abolishing “no-fault” Section 21 evictions, making it harder for landlords to remove tenants.
- Open-ended tenancies, giving tenants greater security.
- Stricter energy efficiency rules, forcing landlords to upgrade properties or exit the market.
In response, many landlords are selling up, contributing to the surge in flats listed for sale. This trend could boost homeownership rates but reduce rental supply, leading to higher rents for those who can’t afford to buy.
Final Thoughts
The UK property market in 2025 is shaped by shifting buyer preferences, lifestyle trends, mortgage costs, and government policies. Whether you’re buying, selling, or just keeping an eye on the market, staying informed is key.
If you’re thinking of selling, book a free valuation with Bowson and let’s discuss how to make the most of your property in today’s evolving market.
