£1.1 billion stamp duty collected in February 2025

Homebuyers in the UK paid £1.1 billion in stamp duty last month, which is the second highest amount for February since records began in 2008. This figure represents a 24% increase from January's £848 million. The spike in payments comes as buyers rush to complete their property purchases before a significant tax change on April 1. On April 1, the threshold for no stamp duty will drop from £250,000 to £125,000. This means that the tax bill for an average home in England will increase from £2,028 to £4,528. First-time buyers also face a lower threshold, which will decrease from £425,000 to £300,000. In London, this change will raise the stamp duty for typical first-time buyers by over £6,000. Experts believe many buyers are trying to finalize their purchases before the deadline. Jonathan Stinton from Coventry Building Society warns that those unable to complete in time may face thousands of pounds in extra costs. The rise in stamp duty receipts is also attributed to a new surcharge for second properties, which increased from 3% to 5% last October. Property experts predict a decline in market activity after the deadline. Jeremy Leaf, an estate agent in north London, noted that while some sellers may negotiate prices, many sales will likely fall through. Increased stamp duty may eventually slow the housing market and reduce tax revenue in the long term. Some mortgage lenders are responding to the upcoming changes by offering cashback deals for buyers who complete after the deadline. Higher mortgage rates are adding to the financial pressures facing homebuyers. As people grapple with these rising costs, many are seeking the best mortgage deals available.