An additional 21% of first-time buyers in England face paying Stamp Duty when a freeze on thresholds is removed at the beginning of April. This is according to estimates from Leeds Building Society.
Currently, first-time buyers pay stamp duty on homes costing more than £425,000 but from 1 April that will reduce to £300,000.
The society 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.
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.
Leeds Building Society Matt Bartle commented: “This new analysis highlights the impact of changes to stamp duty will have on aspirational homeowners. We’ll continue to do everything we can to put homeownership within reach of more people, generation after generation.”
Discussing the housing market more broadly Leeds BS economist Martin Temple 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.”
