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Move or improve: With new Stamp Duty prices from 01.04 - should you move or stay and improve your existing property?

  • Absolute Project Management
  • Mar 31
  • 2 min read

The Spring Statement has bought news that the Stamp Duty holiday is soon to be over. So, with buying property set to become more expensive from 1st April, is it worth considering staying and improving your existing property over a move?



What is Stamp Duty & Where does it apply?

Let’s take it bake to basics. Stamp duty is a tax applied when buying property or land over a certain value. The amount you pay is dependent on its value and other factors such as whether you are a first-time buyer, whether you own multiple properties and if it will be used for residential purposes.

 

Currently if you’re buying a property that will be your primary residence (and you are not a first-time buyer)

  • No tax is payable for a property costing £250k or below

  • 5% tax payable on proportion of property cost between £250- £925K

  • 10% tax payable on proportion of property cost between £925K – £1.5 million.

  • 12% tax payable on proportion of property cost over £1.5 million.

 

What are the changes?

Summary of the changes effective on 1 April 2025:

  • The threshold in which you pay no tax for main residents is dropping from £250k to £125k. For first-time homebuyers it’s falling from £425k to 300k.

  • First-Time Buyers Relief (lower stamp duty rate) will drop from £625k to £500k.

  • Those buying additional properties will pay 7% instead of 5% stamp duty for property values from £125k to £250k.

 

So, from April 2025 (excluding first time buyers or those buying additional properties) Stamp Duty will be calculated as follows:

  • No tax payable for a property value of £125K or below

  • 2% tax payable on proportion of property cost between £125K-250K

  • 5% tax payable on proportion of property cost between £250- £925K

  • 10% tax payable on proportion of property cost between £925K – £1.5 million.

  • 12% tax payable on proportion of property cost over £1.5 million.

 

That means for a property valued at:

  • £800K you can expect to pay £70,000

  • £1.5 million you can expect to pay £168,750

  • £2 million you would pay £253,750

  • 3.5 million you would pay £508,750

  • 5 million you would pay £763,750

 

What could you do with that cash?

Evidentially they are no small sums. But what could you actually do with that money if you decided to opt for a renovation instead? Very roughly speaking (and based on very approx. London 2025 prices):

  • £100K- basic renovation- including redecoration, kitchen, bathroom and limited plumbing/ elec changes using low-cost fittings

  • £150K- basic renovation (as above) plus exterior works and more detailed elec/ plumbing changes (eg rewire/ new boiler)

  • £200K- thorough renovation incl layout changes and mid-level finishes

  • £300K- thorough renovation plus extension

  • £500K- thorough renovation with mid- high end fittings, extension (loft and side return) and installation of renewable technologies (solar PV’s/ ASHP)



So perhaps the case for staying put and renovating makes itself through the numbers?! If you are considering a renovation project and would like our help, please reach out here! We can help guide you through the process to make the most of your budget and the best use of your space for years to come.

 
 
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