37% of first-time buyers to pay stamp duty from next week

Leeds Building Society estimates that an additional 21% of first-time buyers in England face paying stamp duty when a freeze on thresholds is removed next week.

Currently, first-time buyers pay stamp duty on homes costing more than £425,000 but from Tuesday April 1st that will reduce to £300,000.

The Society has assessed 2024 market-wide mortgage data and projects that an additional 59,400 annual home purchases are projected to become subject to the tax in England, alongside 43,000 purchases where taxes will be higher.

This means that following the rule changes, more than 102,000 first-time buyers face paying stamp duty.

The changes mean that 85% of first-time buyers in London would be subject to the charges, along with 55% in the South East, 49% in the East of England, 30% in the South West, 16% in the West Midlands, 15% in the East Midlands, 13% in the North West, 9% in Yorkshire and the Humber, and 6% in the North East.

Martin Temple, economist at Leeds Building Society, said: “We are seeing activity above the expected level at this time of year, as buyers look to complete on any purchases ahead of the changes to Stamp Duty Land Tax at the beginning of April.

“Although the outlook for the housing market remains broadly positive, with expected reductions in interest rates later this year, these changes represent another barrier for first-time buyers in the most unaffordable parts of the country.”