Zoopla’s report said that first-time buyers purchasing a £425,000 property will pay nothing today but would need to pay £6,205 in stamp duty land tax from 1 April 2025.
The number of first-time buyers liable to pay SDLT will increase as the nil-rate threshold reduces from £425,000 to £300,000. Those buying homes priced between £500,000 and £625,000 will also lose their eligibility for first-time buyer relief. This means that a third of first-time buyers in England will pay more stamp duty from April next year than today.
The impact of this change will be greatest in Southern England, where buyers usually spend considerably more on property. Specifically, Zoopla suggests that first-time buyers in London, the South East, and the East of England will be most affected.
The average first-time buyer in London will face a stamp duty bill of £5,600, while it will be £1,390 in the South East and £1,040 in the East of England, compared to nothing today.
Those buying in Camden, Hammersmith and Fulham, and Islington will see stamp duty increase by an average of £15,000.
At the other end of the scale, most buyers in the North and the East/West Midlands won’t be hugely affected by the changes on 1 April 2025. The vast majority (95%) of first-time buyers in these regions are currently looking for homes below £300,000 and, therefore, will not be impacted by the incoming changes. For example, the average property prices in Manchester and Liverpool are £226,600 and £159,600 respectively.
