The number of people stepping onto the property ladder increased to 341,000 during 2024, up 19% compared to the previous 12 months as many sought to complete before the Stamp Duty change on April 1st.

First-time buyers (FTBs) made up over half (54%) of all home purchases with a mortgage last year, the biggest figure on record.

Earlier this week, there was a warning that a significant number of property deals were set to fall through as thousands of first-time and other buyers fail to complete before the 31 March Stamp Duty deadline.

The ‘nil rate’ threshold for FTBs will go down from £425,000 to £300,000 in April.

More than 120,000 buyers face the Stamp Duty hike as a third of the total with offers accepted will fail to complete in time, according to TwentyCi data analysed by Hamptons.

Stamp Duty threshold reductions won’t make things any easier in the short term for first-time buyers.”

Amanda Bryden, Head of Mortgages at Halifax (main picture), says: “Looking ahead we expect modest house price growth in 2025, but upcoming Stamp Duty threshold reductions won’t make things any easier in the short term for first-time buyers.

“However as last year’s figures show, there are ways to make your money go further, with affordable areas in the north of the country, such as County Durham or Burnley, offering more value,” she says.

Big increase

“Last year saw a big increase in the number of first-time buyers, up almost a fifth from 2023. This likely reflects an improvement in mortgage affordability, as interest rates eased and stabilised, providing more certainty for those stepping on to the ladder.”

Bryden says “it’s encouraging that first-time buyers still account for more than half of all new mortgages, the biggest majority ever recorded”.

Industry reaction

Matt Thompson, Head of Sales at Chestertons, says: “In December 2024 as well as the beginning of this year, the property market saw particularly high demand from first-time buyers who were motivated to beat April’s Stamp Duty deadline.

“This spike in buyer activity led to the majority of properties exchange hands for the asking price although some sellers, especially those in a rush to sell, agreed to enter price negotiations.”

First-time buyers have felt an added sense of urgency in recent months.”

Tom Bill, Head of UK Residential Research at Knight Frank, says: “With a potential stamp duty saving of more than £6,000 if they act before April, first-time buyers have felt an added sense of urgency in recent months.

“Together with people moving for jobs and schooling, they are among the needs-driven buyers that have increasingly supported demand in the UK housing market as mortgage rates have risen since the Budget,” he says.

“While they face affordability pressures, a stock squeeze in the lettings market has kept upwards pressure on rents, which has made buying a more attractive option for some.”