At the moment, first-time buyers pay stamp duty on homes over £425,000, but this will decrease to £300,000 from 1 April.
According to Leeds Building Society, following stamp duty changes, there will be around 59,400 annual home purchases subject to the tax in England and taxes will be higher for around 43,000 purchases.
The building society noted that the changes mean around 85% of first-time buyers in London will be subject to changes, while it will be 55% in the South East, 49% in the East of England, 30% in the South West, 16% in the West Midlands, 15% in the East Midlands, 13% in the North West, 9% in Yorkshire and the Humber and 6% in the North East.
The mutual said products like its Income Plus deal could help first-time buyers borrow £66,000 more on average.
As an example, aspiring homeowners with a minimum household income of £40,000 could borrow up to five-and-a-half times income, so the average first-time buyer could borrow a maximum of £356,000 through the product compared to £290,000 under standard lending.
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Matt Bartle, director of mortgages Leeds Building Society, said: “We all know the value that having a place to call home can add to our lives. As a mutual, we were set up 150 years ago to help people own their own home and save for their future, creating a sense of belonging in communities across the country.
“This new analysis highlights the impact of changes to stamp duty will have on aspirational homeowners. We’ll continue to do everything we can to put homeownership within reach of more people, generation after generation.”
Martin Temple, economist at Leeds Building Society, added that the building society was “seeing activity above the expected level at this time of year” as buyers race to complete before the stamp duty deadline on 1 April.
“Although the outlook for the housing market remains broadly positive, with expected reductions in interest rates later this year, these changes represent another barrier for first-time buyers in the most unaffordable parts of the country,” he noted.
This article was first published on YourMortgage.co.uk’s sister site, Mortgage Solutions. Read: Additional 21% of first-time buyers in England will pay stamp duty when threshold changes
