The latest real-time market analysis from Rightmove reveals early signs of first-time buyers rushing to beat the stamp duty deadline in more expensive areas.
In the autumn Budget it was confirmed that stamp duty thresholds in England would lower from 1st April 2025 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,
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.”
| Region | Average asking price | % of homes that will be stamp duty- free from 1st April 2025 | First-time buyer demand pre-Budget | First-time buyer demand post-Budget | Change in demand |
| London | £683,316 | 8% | +28% | +31% | +3% |
| South East | £471,477 | 24% | +23% | +24% | +1% |
| East of England | £416,724 | 32% | +28% | +32% | +4% |
| South West | £374,909 | 34% | +12% | +9% | -3% |
| West Midlands | £288,048 | 48% | +17% | +13% | -4% |
| East Midlands | £286,838 | 53% | +23% | +19% | -4% |
| North West | £259,792 | 58% | +18% | +14% | -4% |
| Yorkshire and The Humber | £249,708 | 61% | +12% | +10% | -2% |
| North East | £189,694 | 73% | +12% | +15% | +3% |
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