If you are buying or selling a property in Newmarket, Cambridge, Burwell or Downham Market in 2026, the current stamp duty rules will directly affect your budget. Since 1 April 2025, Stamp Duty Land Tax (SDLT) thresholds in England reverted to lower levels, meaning most buyers now pay more than they did under the temporary relief that was in place between September 2022 and March 2025. There are no further changes planned for 2026, so the April 2025 rates continue to apply to all completions this year.
This guide explains exactly what you will pay, who is most affected, and what it means practically if you are buying in East Anglia right now.
What Is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is a government tax paid by property buyers in England and Northern Ireland when purchasing residential or commercial property above a certain threshold. It is calculated on a sliding scale, with different portions of the purchase price taxed at different rates. The exact amount you pay depends on the purchase price, your buyer type, and whether you are buying your main residence or an additional property.
Your conveyancer handles the payment on your behalf, and it must be paid within 14 days of the completion date. Scotland and Wales operate separate systems: Land and Buildings Transaction Tax (LBTT) in Scotland and Land Transaction Tax (LTT) in Wales.
What Changed in April 2025 and What Does It Mean in 2026?
The temporary higher thresholds introduced by the government in September 2022 came to an end on 31 March 2025. From 1 April 2025, the rates reverted to the previous, lower levels. No new changes have been announced for 2026, meaning buyers completing this year are subject to the same rules.
The key changes that took effect from 1 April 2025 were:
- The nil-rate threshold for standard buyers dropped from £250,000 to £125,000
- The nil-rate threshold for first-time buyers dropped from £425,000 to £300,000
- The maximum property value eligible for first-time buyer relief dropped from £625,000 to £500,000
- The surcharge on additional properties (second homes and buy-to-let) increased from 3% to 5%
In practical terms, most buyers completing a purchase in 2026 are paying more stamp duty than they would have done before April 2025.
2025 vs 2026 Stamp Duty Rates at a Glance
The tables below show the current rates that apply to completions in 2026, alongside the previous rates for comparison.
Standard Residential Buyers (Main Residence)
| Property Value Band | Rate Before Apr 2025 | Rate in 2026 |
| Up to £125,000 | 0% | 0% |
| £125,001 to £250,000 | 0% | 2% |
| £250,001 to £925,000 | 5% | 5% |
| £925,001 to £1.5 million | 10% | 10% |
| Over £1.5 million | 12% | 12% |
First-Time Buyers
| Property Value Band | Rate Before Apr 2025 | Rate in 2026 |
| Up to £300,000 | 0% (up to £425,000) | 0% |
| £300,001 to £500,000 | 0% (up to £425,000) | 5% |
| Above £500,000 | Standard rates apply above £625,000 | Standard rates apply |
Note: First-time buyers purchasing above £500,000 no longer qualify for first-time buyer relief and pay standard rates in full.
Additional Properties (Second Homes and Buy-to-Let)
| Property Value Band | Rate Before Apr 2025 | Rate in 2026 |
| Up to £125,000 | 3% | 5% |
| £125,001 to £250,000 | 5% | 7% |
| £250,001 to £925,000 | 8% | 10% |
| £925,001 to £1.5 million | 13% | 15% |
| Over £1.5 million | 15% | 17% |
Source: GOV.UK SDLT guidance and MoneyHelper Stamp Duty calculator
How Much Will You Actually Pay in East Anglia in 2026?
To make these figures more tangible, here are some worked examples using realistic property prices in the areas Morris Armitage covers.
Example 1: Standard Buyer Purchasing a £327,000 Home in Newmarket
- £0 on the first £125,000
- 2% on £125,001 to £250,000 = £2,500
- 5% on £250,001 to £327,000 = £3,850
- Total SDLT: £6,350
Before April 2025, the same buyer would have paid £3,850 on this purchase (5% on the portion above £250,000 only). The April 2025 changes add £2,500 to the bill.
Example 2: First-Time Buyer Purchasing a £350,000 Home in Burwell
- £0 on the first £300,000
- 5% on £300,001 to £350,000 = £2,500
- Total SDLT: £2,500
Before April 2025, this same first-time buyer would have paid nothing, as the full purchase price fell below the previous £425,000 nil-rate threshold.
Example 3: Landlord Purchasing a £260,000 Buy-to-Let in Downham Market
- 5% on the first £125,000 = £6,250
- 7% on £125,001 to £250,000 = £8,750
- 10% on £250,001 to £260,000 = £1,000
- Total SDLT: £16,000
Before April 2025, the same landlord would have paid £10,300. The increase in the additional property surcharge from 3% to 5% now adds meaningfully to investor purchase costs.
For an accurate calculation specific to your situation, use the official HMRC Stamp Duty Land Tax calculator on GOV.UK.
Who Is Most Affected by the 2026 Stamp Duty Rules?
First-Time Buyers
First-time buyers in East Anglia are among the most affected by the April 2025 changes. With average property prices in Newmarket sitting around £327,000 (Rightmove, June 2024) and average prices in Burwell at around £446,000 (Rightmove, June 2024), many first-time buyers now face stamp duty bills they would not have paid under the previous thresholds.
First-time buyers purchasing above £500,000 lose their relief entirely and pay standard rates. Given Burwell’s average price, this is a genuine consideration for buyers in that area.
Home Movers
Standard buyers completing in 2026 will pay 2% on the portion of their purchase price between £125,000 and £250,000, a band that was previously nil-rated. On a £300,000 purchase, this adds £2,500 to the upfront cost compared to pre-April 2025 rates.
Landlords and Property Investors
The 5% additional property surcharge (up from 3%) has a significant impact on buy-to-let investors and those purchasing second homes across East Anglia. Our Buy-to-Let Investment Guide for East Anglia 2026 explores how this affects investment returns in more detail.
Does Stamp Duty Affect Property Prices in Newmarket and Cambridge?
Higher upfront purchase costs can influence buyer behaviour, negotiating positions, and market activity. In areas where property prices sit just above key thresholds, some buyers have more room to negotiate on purchase price to offset their stamp duty liability.
In Cambridge, where average rental prices stood at £1,773 per month as of August 2025 (ONS), strong rental demand continues to support investor activity despite increased SDLT costs. In Downham Market, where average prices of around £261,000 (Rightmove, June 2024) mean buyers are not significantly affected by the higher standard rate bands, market conditions remain relatively stable.
For tailored advice on how current stamp duty rules affect your specific purchase, speaking to a local property expert who understands your area is the most effective step you can take.
Will Stamp Duty Rates Change Again?
As of February 2026, no further changes to SDLT rates in England have been announced by the government. The April 2025 thresholds remain in place. Some commentators have discussed the possibility of longer-term stamp duty reform, but nothing has been confirmed and no timeline has been indicated.
We recommend using the official GOV.UK SDLT guidance to stay current, and speaking directly with your conveyancer or a local estate agent for up-to-date guidance relevant to your transaction.
Key Things to Budget For Alongside Stamp Duty
Stamp duty is one of several upfront costs buyers in East Anglia should plan for. A realistic budget should also include:
- Conveyancing and legal fees
- Survey and valuation fees
- Mortgage arrangement and broker fees (where applicable)
- Removal and moving costs
- Any immediate renovation or redecoration work
Factoring all of these costs in from the outset avoids unwanted surprises and means you can plan your property search and offer strategy with confidence.
Related Guides from Morris Armitage
- Buy-to-Let Investment Guide East Anglia 2026: Yields and Hotspots
- How to Get an Accurate Property Valuation in 2026
- Browse properties for sale across East Anglia
Thinking of buying or selling in East Anglia this year? Our local team can help you understand what you’ll pay and how to plan your move with confidence. Get in touch with Morris Armitage today.