Their analysis indicates that the South West and East of England would be most affected by the change, while the North East would be the least impacted
A property website’s analysis suggests that less than four in 10 (37%) homes for sale in England will be exempt from stamp duty for first-time buyers when the existing thresholds revert back from April 2025.
The nil-rate threshold for first-time buyers was temporarily raised from £300,000 to £425,000 in 2022 and this only applies to purchases made up until March 31, 2025. Stamp duty is only applicable in England and Northern Ireland, with Scotland and Wales having different property taxes.
Rightmove has stated that currently, the majority (58%) of homes for sale in England are free from stamp duty for first-time buyers, although this varies significantly by region. Their analysis indicates that the South West and East of England would be most affected by the change, while the North East would be the least impacted.
In London, fewer than one in 10 homes will be exempt from a stamp duty charge for first-time buyers in April 2025 if the old thresholds return, compared with a quarter now, according to Rightmove. Since 2010, the average asking price of a home has increased by 62%, from £230,592 to £373,493.
If they were buying a home at the current average asking price, a first-time buyer in England could face paying £3,675 in stamp duty in 2025, compared with nothing now, says Rightmove. The website has expressed its support for Government plans to assist people taking their first step on the property ladder, including increasing the supply of homes. However, it argues that it could go further by retaining the current threshold.
Rightmove called on the Government to put measures in place that will increase mortgage affordability and support innovative lender products for first-time buyers. Johan Svanstrom, the chief executive of Rightmove, said: “We welcome the new Government’s meaningful ambitions for increasing housing supply.”
“It should consider consumer support measures, by retaining the current first-time buyer stamp duty relief threshold of £425,000 in England, and looking at solutions to help first-time buyers with not only their deposit but also being able to borrow enough from a lender.
The property giant drew from its pool of currently listed properties to conduct this research. The plea from Rightmove follows their announcement of an uptick of 1.8% in their six-months pre-tax profits amounting to £132.7million.
It also reported revenue growth of 7%, which totalled £192.1million, against a steady estate agency membership that saw a 1% rise since the year’s start, standing at 19,061. If potential upcoming interest rate cuts come into fruition, it could serve as further impetus for the property market according to the group.
Mr Svanstrom added: “With the election now concluded, the property market looks forward to potential interest rate reductions which will further stimulate activity.” Tim Bannister, a property expert at Rightmove, said: “The housing market is made up of many connected pieces as owning your first home becomes more difficult, some people rent for longer, which places an additional strain on the rental sector. “
He went on to add: “Stamp duty is a barrier to movement, and keeping the existing thresholds seems like a logical step to providing some first-time buyer support. Even greater stamp duty reforms in the future could have wider implications, such as helping those who are considering downsizing. “
Nathan Emerson, chief executive at property professionals’ body Propertymark, said: “Cutting stamp duty helped many buyers take their first step onto the housing market during the pandemic.
“At a time where house prices remain unrealistic and challenging for many people, it is an important part of the process that the new UK Government looks to help people enter the housing market and retains the stamp duty threshold.
“But there needs to be a raft of other measures to stabilise house prices too.”
Here are the percentages of homes currently free from stamp duty for first-time buyers, followed by the percentages projected from April 2025, and the percentage point difference, according to Rightmove:
– North East, 86%, 74%, minus 12
– Yorkshire and the Humber, 79%, 61%, minus 18%
– North West, 76%, 58%, minus 18
– East Midlands, 75%, 53%, minus 22
– West Midlands, 71%, 49%, minus 22
– South West, 58%, 34%, minus 24
– East of England, 56%, 32%, minus 24
– South East, 45%, 24%, minus 21
– London, 25%, 8%, minus 17
