First-time buyers racing to beat Stamp Duty deadline, says Rightmove

Evidence suggesting first-time buyers are racing against the clock to beat a Stamp Duty deadline, has been revealed by Rightmove.

FTBs currently pay Stamp Duty if their home costs more than £425,000, which is set to drop to £300,000 at the end of March.

The temporary relief was introduced by the previous Conservative government, and the current Chancellor Rachel Reeves(main image) has refused to extend it.

Rushing

Now, analysis by Rightmove shows that in more expensive areas, FTBs are rushing to seal the deal before 1 April.

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 at the end of October, suggesting some first-time buyers are in a hurry to avoid paying higher charges.

Before the Budget, first-time buyer demand in London was 28% ahead of last year, and now it is 31% ahead.

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.

Act quickly

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, Rightmove says.

It currently takes an average of 5 months (151 days) to complete a property transaction. So FTBs hoping to complete before the deadline on 1 April, need to act quickly.

We’re seeing early signs of first-time buyers reacting.”

Tim Bannister, Property Expert at Rightmove, says: “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.”

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