First-time buyers have seven months to beat stamp duty changes

Posted by Hannah Leigh

There is currently a significant opportunity for first-time buyers and sellers alike to act swiftly before changes to stamp duty take effect in April. Assuming no new announcements in the Autumn budget, stamp duty is set to rise in April 2025. Here’s what you need to know and why you should consider moving quickly.

The Current Stamp Duty Rules for First-Time Buyers

First-time buyers currently benefit from paying no stamp duty on properties up to £425,000. For homes priced above this, they only pay tax on the portion exceeding £425,000, making it a great time to get onto the property ladder without being burdened by additional costs.

However, this is set to change in April 2025 when the threshold for first-time buyer relief drops back to £300,000. This means that many first-time buyers will be subject to higher stamp duty costs if they don't act soon.

The Clock is Ticking

With the average property sale taking 25 weeks from listing to completion, first-time buyers have roughly two months to get their offer accepted to avoid the upcoming stamp duty changes. Time is of the essence, and waiting too long may result in missing out on these substantial savings.

According to Zoopla, a third of first-time buyers in England will pay more stamp duty from April next year than they do now. The time to buy is now—before the market adjusts to these upcoming changes. Acting swiftly could save thousands in taxes.

Impact on Sellers: Why Now is the Ideal Time to Sell?

For sellers, particularly those in the £300,000-£425,000 price bracket, this is an ideal moment to list your property. There is a limited window in which first-time buyers can still take advantage of the higher stamp duty threshold, meaning there could be more motivated buyers actively looking for properties.

If you’re a first-time buyer, now is the perfect time to act before the stamp duty rules revert to their previous thresholds. Sellers can also take advantage of this period, as more buyers will be motivated to move quickly before costs rise.

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