Key changes in England & Wales property law – What you need to know

The England & Wales property landscape is constantly evolving, with recent legal and financial changes set to impact both first-time buyers and landlords. Here, we explore two significant updates shaping the market in 2025: the potential relaxation of mortgage lending rules and changes to stamp duty for second home buyers.

Easing mortgage lending rules to support first-time buyers

In a bid to make homeownership more accessible, UK financial regulators are considering relaxing mortgage lending restrictions imposed after the 2008 financial crisis. These changes could allow banks to offer loans to buyers with smaller deposits and lower incomes, reducing the barriers for first-time buyers entering the property market.

While this initiative aims to stimulate economic growth and open doors for more individuals to purchase homes, it has also raised concerns about potential financial risks. Critics argue that loosening regulations could mirror the conditions that led to previous financial collapses. The outcome of this proposal could significantly influence affordability and market stability, making it a key development to watch.

Increased stamp duty for second homes

The 2024 Budget brought notable changes to stamp duty, particularly for landlords and buyers of second homes. Effective from October 31 2024, the stamp duty surcharge on second homes increased from 3% to 5%. This move is designed to prioritize first-time buyers and deter the rapid accumulation of multiple properties, which often drives up prices in an already competitive market.

First-time buyers remain unaffected by this change, reflecting the government’s commitment to improving accessibility for those entering the property market. However, landlords and second-home buyers now face higher costs, potentially reshaping investment strategies in the buy-to-let sector.

What these changes mean for you

For first-time buyers, the proposed mortgage rule adjustments could make purchasing a home more achievable. Meanwhile, those considering second-home investments will need to factor in the higher stamp duty surcharge when calculating costs.

Whether you’re a first-time buyer, landlord, or investor, staying informed about these changes is essential for navigating the evolving property market.

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