Size of first-time buyer ‘Stamp Duty bomb’ becomes clearer
Stuart Haire at Skipton Group says number of areas where Stamp Duty will hit first-time homes is set to quadruple overnight.
The size of the Stamp Duty bomb about to hit the first-time buyer market has become clearer after Connells-owner Skipton revealed new figures.
For example, the number of places where Stamp Duty will apply on first-time homes is set to quadruple overnight.
Rocket
The proportion of local authority areas where the average first-time buyer property is subject to Stamp Duty will rocket from 8.4% to 32%.
Six of the 10 least affordable areas for first-time buyers are in Wales whereas Scotland dominates the most affordable areas, with only Manchester bucking this trend.
From 1 April, the stamp duty threshold for first-time buyers in England will fall from £425,000 to £300,000, adding £6,250 to the cost of buying a first home worth £425,000.
Today’s analysis shows that this chronic lack of affordability is about to get even worse.”
Stuart Haire, CEO at Skipton Group (main picture) says: “The first step onto the property ladder remains by far the hardest with almost 90% of potential first-time buyers across Great Britain being unable to afford to get on the property ladder without additional help.
“Today’s analysis shows that this chronic lack of affordability is about to get even worse.”
The number of people stepping onto the property ladder increased to 341,000 during 2024, up 19% compared to the previous 12 months, according to TwentyCi data analysed by Hamptons.
First-time buyers made up over half (54%) of all home purchases with a mortgage last year, the biggest figure on record.
Earlier this week, the Government launched a new mortgage guarantee scheme for FTBs, and backed plans to relax mortgage application criteria.
