That’s according to Rightmove, which has analysed its own data and can see signs of first-time buyers rushing to beat the deadline in high-priced areas.
These areas have bucked the wider trend, added the property portal, seeing an uptick in first-time buyer demand since the Budget, while most other areas have seen a decline.
What’s changing?
Stamp duty thresholds in England will go down to their usual levels from 1st April 2025, from their current temporary higher thresholds.
The level up to which properties are exempt from stamp duty for first-time buyers will drop from £425,000 to £300,000. This will affect many first-time buyers, but particularly those in higher-priced areas of England.
In London, only 8% of homes for sale are set to be stamp-duty free for first-time buyers from April. It’s 24% in the South East, and 32% in East of England.
Rightmove explained that it currently takes an average of five months (151 days) to complete a property transaction after agreeing a sale, so first-time buyers would need to beat the average in order to complete before 1st April.
And this explains the recent rush.
Tim Bannister, Rightmove’s property expert said: “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. In most other areas of England, which have a greater availability of stamp duty-free homes for first-time buyers, we’re seeing the opposite trend of some first-time buyers taking a pause for breath with no further help announced in the Autumn Budget.
“However, the long-awaited second Bank Rate cut should hopefully boost optimism amongst movers and help to improve affordability during 2025.”