From 1 April 2025, the current stamp duty threshold up to which first-time buyers don’t pay stamp duty in England is going to revert back from its current level of £425,000 down to £300,000
The level of stamp duty free properties will drop by 20% of over 90,000 properties as of April when the threshold reverts back to £300,000 for FTBs, eXp UK reveals.
Last week, Chancellor Rachel Reeves gave no indication in her Budget that the government would extend the current FTB stamp duty threshold, which is due to expire in March.
From 1 April 2025, the current stamp duty threshold up to which first-time buyers don’t pay stamp duty in England is going to revert back from its current level of £425,000 down to £300,000.
eXp UK analysis shows that there are currently an estimated 453,212 homes listed for sale in England.
Of these properties, 62% (281,863) are priced below the current FTB stamp duty threshold of £425,000 and are available for purchase without paying any stamp duty tax at all.
However, under the incoming lower threshold of £300,000, only 42% of the properties are available without tax.
This marks a reduction of 20%, which means the number of stamp duty purchasing opportunities available to first-time buyers would drop by 91,570 if it were implemented today.
While the national tax-free stock reduction stands at 20%, FTBs in some cities are going to see a larger drop in the number of homes available to them.
The reduced threshold could see the proportion of SDLT-free homes decline from 69% in Bristol, down to 26%, a drop of 34%.
FTBs in Leicester can expect SDLT-free stock to drop by 26%, followed by Brighton by 23%, Greater Manchester by 21%, and Leeds by 20%.
There are, however, a number of cities in which stock levels will see a below average drop, including Liverpool by 13%, Bradford by 14%, and Sheffield by 15%.
eXp UK head Adam Day says: There was hope that last week’s Autumn Budget would extend the current stamp duty relief given to FTBs, at the very least.
Unfortunately, this wasn’t the case and, as a result, the nation’s FTBs now need to prepare themselves for a significant reduction in the number of homes available to them that would come with the benefit of no stamp duty owed.
