As the April 2025 stamp duty deadline approaches, first-time buyers are scrambling to secure their dream homes before the tax relief changes take effect. The current stamp duty exemption for first-time buyers on properties priced up to £425,000 will revert to £300,000, significantly impacting those looking to purchase in higher-priced areas like London and the South East.
So, why the rush? The urgency stems from the substantial financial implications of the upcoming changes. Currently, first-time buyers benefit from a higher threshold, allowing them to save thousands of pounds in stamp duty. However, from April 2025, the threshold will drop, meaning buyers will face higher charges on properties priced above £300,000. This has led to a noticeable increase in demand, particularly in regions where property prices are higher.
Additionally, homes priced up to £250,000 currently enjoy a stamp duty exemption, which will revert to the previous level of £125,000 from April 2025. This change will affect a broader range of buyers, not just first-time buyers, increasing the overall urgency in the market.
Recent data shows a surge in first-time buyer activity in London, where only 8% of homes will remain stamp duty-free after the deadline. Similarly, the South East and East of England have seen increased demand, with 24% and 32% of homes, respectively, expected to be affected by the changes. This rush is a clear indication that buyers are keen to avoid the additional costs and secure their homes under the current favourable conditions.
Property experts suggest that now is an opportune time for first-time buyers to enter the market. Head of New Homes, Ella Pearson, said: “The impending changes have prompted many to accelerate their buying plans. With stamp duty thresholds in England lowering from April, we’re seeing early signs of first-time buyers reacting.”
“For those considering buying their first home, acting swiftly could result in significant savings. The current stamp duty relief provides a financial cushion that will soon be reduced. Additionally, the recent cut in the Bank Rate is expected to improve affordability, making it an even more attractive time to buy.
“With the stamp duty deadline looming, first-time buyers are rightfully eager to make their move. The combination of current tax relief and favourable market conditions presents a unique opportunity that won't last long. For those ready to take the plunge, now truly is the time to buy.”
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