"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"
- Tim Bannister - Rightmove
Newly released analysis from Rightmove has shown early signs of first-time buyers in more expensive areas racing to beat next April's stamp duty deadline.
In the Autumn Budget it was confirmed that stamp duty thresholds in England would lower from 1st April next year, and the rate at which properties will be exempt from stamp duty would drop from £425,000 to £300,000.
First-time buyers in higher-priced areas of England are set to be more affected. In London, only 8% of homes for sale will be stamp-duty-free for first-time buyers from April. It’s 24% in the South East and 32% in the East of England.
These areas have seen an uptick in first-time buyer demand since the Budget, suggesting some first-time buyers are rushing to avoid paying higher charges. Before the Autumn Budget, first-time buyer demand in London was 28% ahead of last year – now, it is +31% ahead.
In the East of England, the trend has moved from +28% to +32% ahead of the same period last year since the Budget, and in the South East, first-time buyer demand has ticked up from 23% ahead of last year pre-Budget, to 24% ahead post-Budget.
The upward trend compares with most other areas of England that have seen a decline in demand since the Budget, except for the North East.
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.
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 on 1st April, need to act quickly and hope to beat the average length of time to complete a home purchase.
Tim Bannister, Rightmove’s property expert said: “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.”
Toby Leek, NAEA Propertymark President comments: “Many first-time buyers who have been waiting in the wings and analysing market conditions will certainly now be looking to take their initial step onto the housing ladder and save themselves thousands of pounds by completing before April 2025.
“Not only this but as finances start to ease in terms of interest rates and other associated home costs, more buyers are finding a middle ground in their affordability and are able to secure their ideal homes moving forward making an all-round more attractive market."
