Currently, first-time buyers pay stamp duty on homes over £425,000, dropping to £300,000 in March 2025.
The average first time buyer home in London is £461,450, meaning the Stamp Duty on an average priced first-time buyer home in London will shoot from £1,822 to £8,072 next April.
In Wednesday’s Budget, there was no mention to permanently increase the stamp duty thresholds.
- B&C Awards 2024: The Video
- Aldermore urges government to keep FTB stamp duty exemption
- Almost two in three brokers believe Budget will negatively impact housing market
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “With no action from the chancellor to make stamp duty thresholds permanent, first-time buyers are left in an increasingly tough spot.
“At the very least we would have liked to have seen the thresholds made permanent in yesterday’s announcement, even if it was just for first time buyers, as they can be the catalyst for additional property activity.
“First time buyers who can’t move before next March will need to ready themselves for the hike — It could be a lot to try and save, so many new buyers may turn to family to make up the difference — putting even more pressure on the ‘bank of mum and dad’.”
Leave a comment