As the stamp duty deadline approaches, new research from mortgage broker Mojo Mortgages quantifies what first-time buyers in London will need to pay to take their first step on the property ladder.
Mojo analysed the average house price in every Greater London borough before calculating the current stamp duty cost today and comparing it to the predicted stamp duty cost from 1st April.
It reveals that the average increase in stamp duty across all London boroughs for first-time buyers will be £6,408, rising from £11,419 to £17,827.
The analysis also shows that 15 boroughs will see the maximum increase of £11,250, including popular areas like Barnet, Brent, Ealing, and Hackney.
First-time buyers in Havering, Bexley, and Croydon, who currently pay no stamp duty, will face new charges of £11,150, £10,300, and £10,150, respectively.
Barking and Dagenham, despite having the lowest average house price at £344,000, will still see stamp duty introduced at £7,200 for first-time buyers.
The most expensive borough, Kensington and Chelsea, with an average price of £1,070,000, will see a relatively small increase of £2,500, from £48,250 to £50,750.
And Westminster, the second most expensive borough, will have the highest stamp duty for first-time buyers at £33,300 after the changes.
Commenting on the findings Mojo’s head of mortgages John Fraser-Tucker said: “These changes represent a significant shift for first-time buyers in London. With the nil-rate threshold dropping to £300,000 and maximum relief reduced to £500,000, many buyers may find themselves facing unexpected costs. It’s key for prospective homeowners to act quickly and consider properties just below these thresholds to minimise their stamp duty burden.”
