Ahead of the new stamp duty changes from April 2025, a new study has revealed how Trafford in Greater Manchester is the only local authority outside of London and the South East where the average first-time buyer will now be paying stamp duty.
The study, conducted by My Home Move Conveyancing, looked at the impact of the changes, based on the average sale price for first-time buyers in each area of the country, to understand where first-time buyers are likely to be paying stamp duty for the first time – and how much it’ll cost them.
Currently, first-time buyers pay no stamp duty when buying a home with a price of up to £425,000 – however, that will return to a level of £300,000 from April 2025, after the government previously reduced it as an incentive for people to move home and get on the property ladder.
The study found that first-time buyers in Trafford will now likely be paying for stamp duty, when previously they would have fallen below the nil-rate threshold. The average house price for a first-time buyer in Trafford is £317,000, meaning they now face additional fees of £850.
My Home Move Conveyancing, which predicts a rush of first-time buyers looking to complete before the deadline, found that those new to the property market in 69 local authorities will now likely face charges when previously they would have fallen below the nil-rate threshold. This includes cities such as Oxford, Cambridge and Greenwich, where first-time buyers now face average fees of over £5,000.
Those in London and the South East are most affected by the changes, with the average purchase price in these areas already exceeding the threshold, and some will face hikes of over £11,000, including in Hackney, Wandsworth and Richmond upon Thames.
The study looked at average house prices for first-time buyers across various local authorities to determine if they will incur stamp duty at the new threshold. It then assessed what portion of the property value would be affected, offering insights into the financial impact of the revised stamp duty on buyers in different regions.
The areas with the lowest house prices that will now be paying stamp duty
| Local authority | Average price of sold properties over the last year for first-time buyers (ONS) in £ | Increase in £ in stamp duty costs |
| South Gloucestershire | £301,000 | £50 |
| Slough | £302,000 | £100 |
| Lewes | £303,000 | £150 |
| Test Valley | £303,000 | £150 |
| Cherwell | £307,000 | £350 |
| Basildon | £308,000 | £400 |
| Stratford-on-Avon | £309,000 | £450 |
| Bracknell Forest | £314,000 | £700 |
| West Oxfordshire | £314,000 | £700 |
| Rochford | £315,000 | £750 |
| East Hampshire | £315,000 | £750 |
| Dartford | £315,000 | £750 |
| Chelmsford | £317,000 | £850 |
| Horsham | £317,000 | £850 |
| Trafford | £317,000 | £850 |
Alistair Singer, Director at My Home Move Conveyancing, said:
“We’ve known since 2022 that these changes were coming, however the financial impact will still come as a shock to first-time buyers. Indeed, some were hoping in the budget on 30th October, that the timeframe for the higher level of relief would be extended beyond April 2025. Not least as the Government have highlighted the need to support first time buyers to get on to the housing ladder.
“While the biggest shocks will be felt in London and the South East, any first-time buyer purchasing a property over £300,000 will need to be prepared to pay stamp duty that they wouldn’t previously need to consider before.
“We’re expecting a rush of first-time buyers looking to complete on a property before the deadline, however it’s crucial to plan ahead. Instructing a conveyancer early on in the process should help to avoid any disappointment as the deadline approaches, especially if there is a chain involved in your purchase, which can cause further delays.”
Readers can find the full report here: https://myhomemoveconveyancing.co.uk/buyers/what-can-you-afford/stamp-duty-2025-will-first-time-buyers-pay-more/
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