First-time buyers rush to beat stamp duty deadline
Adapted from a Rightmove Property news article 3 December2024
In the Autumn Budget, Chancellor Rachel Reeves announced an increase to the amount of stamp duty home-movers and landlords in England will pay from the start of April next year.
Since September 2022, buyers of homes priced up to £250,000 have had an exemption from paying stamp duty. This is set to revert to previous levels from April, when stamp duty will be payable on homes priced above £125,000.
The threshold has also been raised for first-time buyers since 2022, with no stamp duty payable on homes priced up to £425,000. For homes priced above £425,000, first-time buyers currently pay 5% on the amount up to £625,000. If the home is priced above £625,000, the first-time buyers’ relief doesn’t apply. From April, the threshold will revert back to £300,000.
Buyers rush to beat the deadline
We’re already seeing early signs of first-time buyers rushing to beat the April 2025 stamp duty deadline in more expensive areas.
Rightmove’s property expert, Tim Bannister, says: “With stamp duty thresholds in England lowering from April, we’re seeing early signs of first-time buyers reacting. In London and higher-priced areas, where first-time buyers are most likely to be affected, we’re seeing some pull forward their plans to try and avoid higher charges.
“In most other areas of England, which have a greater availability of stamp duty-free homes for first-time buyers, we’re seeing the opposite trend of some first-time buyers taking a pause for breath with no further help announced in the Autumn Budget. However, the long-awaited second Bank Rate cut should hopefully boost optimism amongst movers and help to improve affordability during 2025,” he adds.
Rising stamp duty charges are likely to have less impact in areas where there is already a wide availability of homes below the £300,000 threshold. More widely, there was little market support announced in the Budget to help first-time buyers, which could be contributing to some pulling back.
How long is it taking to buy a home?
It currently takes an average of 5 months (151 days) to complete a property transaction across Great Britain. This means that first-time buyers hoping to find their next home and complete before the stamp duty deadline in April 2025, need to act quickly and hope to beat the average length of time to complete a home purchase.
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