Number of first-time buyers paying stamp duty to increase
April 4, 2025 by Mark
News
The number of people buying a home for the first time who will have to pay stamp duty on it is set to increase by a significant amount, according to the latest research.
This research comes from Leeds Building Society and it forecasts that there will be a 21% rise in the number of first-time buyers who are eligible for stamp duty. That will take the total percentage of them that pay the tax to 37%. This increase is set to kick in when the freeze on the stamp duty threshold is axed from the start of April.
That will lower the threshold for eligibility by a considerable amount. Up until now, only those paying over £450,000 for a home were eligible for stamp duty payments. Now the threshold is set to be lowered to £300,000 though, which will drag in many more buyers.
The Leeds Building Society research indicates that 59,400 more purchases each year will now come with stamp duty liability. That figure is for property transactions in England. It also estimates that 43,000 buyers will now be paying higher stamp duty than before.
London and the South East are the regions that will be most affected, with 85% and 55% of buyers respectively now becoming eligible for stamp duty. Martin Temple from Leeds Building Society said that this would make things even harder for first-time buyers in those areas of the country.
Mortgage advisors who have the CeMAP qualification should be promoting their services to buyers who are unsure how to navigate the changes.
Written by
Mark
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