According to reports, as the stamp duty deadline looms, there is an increase in the number of first-time buyers looking for their first home
After March 31st 2025, the current stamp duty exemption, which exempts the first £425,000 of a home purchase from stamp duty, will return to £300,000. Additionally, the highest eligibility level for discounted rates is lowered from £625,000 to £500,000 as a result of this modification. To take advantage of the current reductions, many potential buyers are speeding up their purchases, particularly in more expensive regions like London and the South East.
Market data indicates that purchasers are responding quickly, as most property sales take many months to complete. With the new criteria expected to dramatically increase expenses for properties that exceed the increased restrictions, the current terms have a strong attraction. Losing the current exemption for first-time buyers may result in higher tax bands, especially in locations where average property prices exceed the new levels.
The increased activity is a testament to the policy's significant impact on first-time buyers' purchasing decisions. However, it also highlights the broader challenges within the housing market, particularly in ensuring accessibility and affordability for new entrants.
This heightened activity amongst first-time buyers will benefit sellers everywhere. Sellers can differentiate themselves from the competition by being competitive when there is greater demand and more houses for sale, and with mortgage rates already beginning to decrease thanks to the recent Bank of England base rate cuts, the next few months should see an invigorated property market indeed.
