Capital at risk.

The path to home ownership is changing with new stamp duty rules coming in April 2025. The tax-free amount for first-time buyers will drop from £425,000 to £300,000, which means rethinking how you save for your first home. Fortunately, you don’t need to get caught out, and preparing for the changes now will help you keep ahead of the game. Plus, Kaldi's here to help you navigate these changes so you get your money working harder toward that dream home.

It’s becoming harder to buy a house, isn’t it?

The short answer is yes. Yes, it is. House prices keep climbing (they're up 3.3% from 2023), while wages are struggling to keep pace. Plus, mortgage rates are sitting around 4.75%, better than last year, but still way higher than they have been for the last 20-odd years.

The numbers tell quite a story. First-time buyers are now typically 34 years old, which is five years older than buyers were just 25 years ago. And here's a reality check: about 40% of first-time buyers need help from their family, with the average parental gift being around £25,000.

We're not trying to put a downer on your home ownership dreams, and we do have some good news. With stamp duty changes coming and house prices continuing to rise, it's more important than ever to get smart about how you save. There are still ways to make it happen. You just need the right strategy and tools to help you get there faster.

Now, onto that pesky stamp duty.

What is stamp duty?

Stamp duty is a tax you pay to the government when you buy a property in the UK. The amount you pay depends on the price of your property, with different rates applying to different portions of the purchase price.

First-time buyers get discounted rates to help them get onto the property ladder, while those buying second homes or investment properties pay higher rates. It's an important cost to factor into your budget when you're planning to buy a home.

Here's what's changing for first-time buyers

Big changes are just around the corner for stamp duty, kicking in this April. Right now, you won't pay any stamp duty on the first £425,000 of your property purchase. But in less than two months, that tax-free amount drops to £300,000.

What does this mean in real money? If you're buying a £400,000 property after April (the average price of a London home is just over £500k), you'll need to pay £5,000 in stamp duty, money that would've stayed in your pocket under the current rules.

It might feel like another hurdle in the way of getting your first home. But with the right planning and tools (hello, that's us), you can still make your home ownership dreams happen. You just need to be savvy about building your deposit.

Getting ready for the stamp duty changes

There’s still time to get your plans in order before the new rules kick in. Whether you're already house hunting or just starting to save, here's what you should think about:

Reexamine your budget

Take a fresh look at your finances and work out how much extra you might need to save. If you're eyeing up properties over £300,000, you'll need to factor in the new stamp duty costs on top of your deposit and other moving expenses.

Start saving smarter

With the stamp duty changes on the horizon, it's more important than ever to make your money work harder. Think about ways to boost your savings rate, whether that's cutting back on non-essential spending, finding better interest rates or exploring investment options that could help your money grow faster over time.

How Kaldi can help you save for stamp duty

Building up a bigger deposit just became even more important with these stamp duty changes. While that might sound daunting, Kaldi makes it easier by turning your everyday shopping into a way to grow your house fund.

Smart ways to save with Kaldi:

●      Shop and earn cashback at major retailers

●      Round up your purchases automatically

●      Link your account with family for extra help

●      Refer friends to earn bonus cashback

●      Invest your savings through the app

Shop with cashback

With over 100 participating UK retailers including big names like Amazon, M&S and Sainsbury’s, you can earn up to 4% cashback on your everyday shopping. That cashback goes straight into your savings, helping your house fund grow while you shop.

Save your spare change

Our automatic round-up feature turns those odd pennies into pounds. When you buy your £3.60 coffee, we'll round it up to £4 and put that 40p straight into savings. Small changes add up faster than you might think.

Team up with family

Link accounts with family members to pool your cashback rewards together. When they shop, their rewards can go toward your house deposit too. It's a great way for family to help boost your savings without large cash gifts. Plus, Mum will get you out of the house faster!

Get rewarded for referrals

Spread the word and get rewarded. When your friends join Kaldi using a referral code, you'll earn an extra 0.5% bonus on their spending for three months. You can keep refreshing this with new referrals.

Put your money to work

Don't just save; invest. We offer carefully chosen funds through trusted providers like Fidelity and Vanguard, L&G, Royal London and HSBC to help your money grow faster over time. You can automatically invest your cashback and round-ups.

The best part is you don't need to change your spending habits or sacrifice your social life. Just shop as you normally would, and we'll help your money work harder toward your home-buying goals. Whether you're looking at properties under £300,000 or planning for a bigger purchase with stamp duty involved, every bit of cashback and every rounded-up penny gets you closer to your dream home.

Check out Yusef’s journey to buying his first home

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Kaldi’s duty to help you save for a house

Getting your money ready for these stamp duty changes doesn't have to be complicated. With Kaldi, you can turn your everyday spending into an easy way to build towards your house deposit. Download the app today and start making your money work harder toward your dream home. No lifestyle changes needed!

Capital at risk.

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