A home moving lead generation website has reported first time buyers (FTBs) have a dominant share of enquiries submitted through its conveyancing comparison calculator, reaching a record 64% in December 2024; an indicator of the impact the current reliefs on stamp duty for FTBs currently has on the property market.
reallmoving.com says the stats, which have steadily risen since June 2024, and hit their peak in the final quarter of the year, demonstrate FTBs have been ‘spurred’ into action by the 31st March 2025 deadline. From a 56% market share in July 2024, the proportion peaked in December 2024 at 64% before dipping slightly in January to 63%.
There remain concerns of a high number of fall throughs in the days after the deadline should transactions not complete on time; with conveyancing taking 151 days (5 months) on average, those who are not already in the conveyancing process have little hope of completing before the deadline and should budget for higher bills say reallymoving.
On the 1st April 2025, the temporary higher threshold at which Stamp Duty is payable for FTBs, currently £425,000, reverts to its 2022 figure of £300,000, meaning the proportion paying Stamp Duty will more than double from 17% currently to 40%.
This is most acute in London where First Time Buyers pay £438,442 on average for a property. Stamp Duty bills will jump by £6,250 from £672 to £6,922, with the proportion paying the tax increasing from 46% currently to 79%. In the South East, where buyers pay £330,441 on average to buy a first home, average bills will rise from zero to £1,522 – pulling 56% of First Time Buyers over the tax threshold.
Rob Houghton, founder and CEO of reallymoving, said:
“First Time Buyer activity increased sharply from October through to the end of last year, and has stayed high into January. The prospect of higher Stamp Duty bills is undoubtedly a factor, with savings of over £6,000 up for grabs if First Time Buyers in London can complete before the deadline, and over £1,500 in the South East. The homebuying process continues to take much longer than it used to, and conveyancers have a very busy and stressful few weeks ahead of them, so many First Time Buyers will end up disappointed.”
