First-time buyers dominate home sales ahead of Stamp Duty changes

First-time buyer activity has hit a record high in recent months ahead of the Stamp Duty deadline in March but many will be disappointed, research suggests.

Stamp Duty thresholds will drop from the end of March and data from  comparison website reallymoving shows first-time buyers are acting fast to get deals done and avoid higher property tax bills.

Its figures – based on conveyancing quote requests – showed first-time buyers dominated property market activity in November, December and January, accounting for 64% of home mover activity in December 2024 – a record high – and 63% in January 2025.

With conveyancing taking 151 days on average, reallymoving has warned that those who are not already in the conveyancing process have little hope of completing before the Stamp Duty deadline at the end of March and should budget for higher bills.

From 1 April 2025, the temporary higher threshold at which Stamp Duty is payable for first-time buyers will drop from £425,000 to £300,000.

The comparison website’s analysis shows that the proportion of first-time buyers paying Stamp Duty will more than double from 17% currently to 40% in April.  

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, chief executive 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 more than £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.”

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