First-Time Buyers to Face £11,250 Stamp Duty Hike as Deadline Approaches.
As the government’s stamp duty holiday comes to an end on March 31, 2025, thousands of first-time buyers in England are facing significant tax increases. The holiday’s expiration will impact around 25,000 first-time buyers, who could be burdened with up to £11,250 in extra stamp duty charges when their purchases complete in April.
What the Stamp Duty Changes Mean for First-Time Buyers
From April 1, 2025, homebuyers in England will experience a tax increase. While first-time buyers purchasing homes under £300,000 remain exempt, those buying properties priced between £500,001 and £625,000 will face the steepest rise in stamp duty. On average, home movers will see an additional £2,500 in stamp duty costs, but first-time buyers in this price range will incur up to £11,250 in extra taxes due to the new thresholds.
Delays in Property Deals: A Major Challenge
Rightmove’s data reveals that 74,000 home movers in England are at risk of missing the stamp duty holiday deadline due to lengthy legal completion times, which average 163 days. This delay will result in £142 million in additional stamp duty costs, with £34 million falling on first-time buyers alone. The South East, known for high property prices, will be particularly affected.
Calls for a Deadline Extension
With so many buyers facing unexpected costs, Rightmove is urging the government to consider a short extension to the stamp duty deadline. Property experts warn that these unexpected tax hikes could set back many aspiring homeowners, especially those with limited financial flexibility.
