According to an analysis from Rightmove, hopeful homeowners in higher-priced areas of England are property hunting now so they do not have to pay the tax, which will apply to properties worth more than £300,000 from 1 April.
Currently, the nil-rate band for stamp duty tax is at £425,000 for first-time buyers.
According to Rightmove, higher-priced areas in England will be more affected by this. In London, its data shows just 8% of homes for sale will be exempt from stamp duty for first-time buyers after the nil-rate band is lowered. Some 24% of homes in the South East will avoid the tax, as will 32% of properties in the East of England.
Post-Budget first-time buyer interest
Rightmove said it had seen an uptick in demand from first-time buyers in these regions.
Before the Autumn Budget, first-time buyer demand in London was 28% higher than last year, but now it is 31% more.
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In the East of England, pre-Budget first-time buyer demand jumped from 28% up year-on-year to 32% after the Budget.
In the South East, this changed from 23% ahead of last year before the Budget to 24% post-Budget.
By comparison, Rightmove said most areas in England saw a decline in demand after the Budget, except for the North East.
The firm said the stamp duty change would have less impact in areas where many homes are already below the £300,000 threshold, while the lack of policies directed at first-time buyers might explain the drop in demand across the country.
It currently takes 151 days or around five months on average to complete a property transaction, meaning first-time buyers need to secure a home soon to avoid a potential tax payment.
Tim Bannister, property expert at Rightmove, 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.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: First-time buyers in rush to beat stamp duty deadline, says Rightmove
