Stamp Duty Changes in 2025: What Property Investors and Businesses Need to Know

Stamp Duty Land Tax Changes Are Coming in 2025

Stamp Duty Land Tax (SDLT) changes are coming in April 2025, and they’ll affect property investors, landlords, and business buyers across the UK. Whether you’re a seasoned investor, planning your first property purchase, or managing multiple projects, these updates could influence your tax bill and your investment strategy.

At Roberts Renovations, we work closely with clients across Yorkshire and beyond, helping them design, renovate, and source properties. This guide breaks down the key SDLT changes and what they mean for you.

What Is Changing in Stamp Duty from April 2025?

The Government is introducing new higher rates of Stamp Duty from 1 April 2025, specifically for buyers of additional residential properties, including companies and investors.

Between 31 October 2024 and 31 March 2025, transitional rates will apply. From April, the thresholds shift again, resulting in higher SDLT on the same property price.

Here’s a quick look at the higher SDLT rate bands for additional residential properties:

From 1 April 2025:

• Up to £125,000 – 5%
• £125,001 to £250,000 – 7%
• £250,001 to £925,000 – 10%
• £925,001 to £1.5 million – 15%
• Over £1.5 million – 17%

These apply to companies, landlords, and anyone purchasing additional properties such as buy-to-lets, second homes, or HMOs. You can find the official breakdown on the UK Government website.

Why Have These Changes Been Introduced?

The Government has made it clear that these changes are part of broader efforts to make the housing market more accessible and discourage speculative property purchasing.

In short:

• They want to reduce demand from investors to help first-time buyers
• They aim to close tax loopholes, such as multiple dwellings relief (now abolished)
• They’re generating extra tax revenue from those with the means to invest

For investors and developers, this means adapting quickly and planning with care, especially with margins tighter than ever.

How Will These Changes Affect Property Investors and Business Buyers?

These changes hit hardest for:

• Buy-to-let landlords purchasing additional properties
• Developers acquiring residential stock over £500,000
• Businesses purchasing in company names (Ltd Co or LLP)
• Investors acquiring blocks of flats or portfolios

For example, a company buying a £900,000 residential property will now pay substantially more in SDLT under the new bands compared to today’s rates.

This affects not only cashflow at the point of purchase, but long-term return on investment, especially where refinance or resale is planned.

At Roberts Renovations, many of our clients work with us to renovate or convert properties for resale or rental. Factoring in increased SDLT is now a vital part of your upfront due diligence. Learn more about our property sourcing support.

Stamp Duty Surcharge: The 5% Rule for Additional Properties

One of the biggest changes is the increase in the surcharge from 3% to 5% for additional residential properties.

This applies to:

• Any second residential property
• Company-owned residential purchases
• Buy-to-let and HMO acquisitions
• Holiday lets and serviced accommodation

That 5% is added on top of the normal SDLT rate band.

So, if you're buying a property worth £500,000 as an investment or through a business, you’re now paying a significant additional charge, which can quickly move the goalposts on what’s viable.

These changes apply nationwide, not just in London or the South East. That means even in more affordable areas like Leeds, Bradford or Sheffield, investors need to rework their numbers carefully.

What About the Abolition of Multiple Dwellings Relief (MDR)?

MDR was officially abolished on 1 June 2024.

Previously, MDR allowed buyers of two or more dwellings within the same or linked transactions to calculate SDLT based on the average property price, not the total sum.

This was particularly helpful when:

• Purchasing blocks of flats
• Converting houses into flats or HMOs
• Acquiring portfolios of smaller properties

Its removal means buying multiple units now attracts full SDLT on the total purchase price, without relief.

If you’re a developer sourcing and converting properties into flats or shared accommodation, your SDLT bill could be tens of thousands of pounds higher than before.

Case Study: Buying a Multi-Unit Property in 2025

Let’s say an investor is looking to purchase a three-flat property in a converted Victorian house in York for £675,000.

Under the old MDR system, they might have paid SDLT based on the average dwelling price, around £225,000, reducing their tax significantly.

From 1 June 2024 onwards, and especially post-April 2025, they’ll now pay the full SDLT at the higher band, without relief.

If you’re working on similar projects or want to discuss how to maximise ROI with design-led renovations, our team can help. Explore our property sourcing or interior design services to support your next move.

Should You Act Before the Deadline?

While there’s no need to rush into poor decisions, it’s worth considering how the timeline might impact your current or upcoming projects.

If you're:

• Midway through a purchase
• Looking to complete on an investment in Q1 2025
• Still in the sourcing or legal phase

…it may be worth reviewing timelines with your legal team or mortgage broker.

At Roberts Renovations, we can help identify opportunities that still make sense in the current market, even with higher SDLT rates. Our team supports clients with everything from sourcing to home renovation, to ensure your project performs under the new tax landscape.

Final Thoughts: Planning for Property Success in 2025 and Beyond

The 2025 Stamp Duty changes won’t bring property investing to a halt, but they will force a more strategic, margin-conscious approach.

From sourcing deals with built-in equity to rethinking the type of properties you target, such as family homes instead of multi-units, businesses will need to adapt fast.

Whether you're based in Yorkshire like us or investing across the UK, our team at Roberts Renovations is here to support you with honest advice, creative solutions, and expert renovation services.

Contact us for a no-pressure chat about your goals or upcoming projects — we’re here to help.

Disclaimer

This blog is for general information purposes only. Roberts Renovations is not authorised to offer financial, mortgage, or tax advice. The content above reflects our own experience and research in the property sector. Always consult a qualified tax adviser, accountant, solicitor, or mortgage broker before acting on any property or investment decisions.