Panic begins over first-time buyers’ April 2025 stamp duty deadline

The looming stamp duty deadline in England is a potential dampener for some buyers and sellers in 2025, warns Rightmove.

The portal’s real-time data is capturing the impact on different groups of movers. 

The latest snapshot identifies signs that sellers of smaller properties in higher-priced areas are trying to trade up or just sell before the April 2025 deadline to avoid the higher stamp duty charges, despite now needing to act very quickly.

In the last four weeks, the number of sellers of typical first-time buyer homes with two bedrooms or fewer in London coming to market is up by 20%, the most of any regional market sector. 

In second place is the South-East which is up 16%, which is also the second most expensive region. 

Meanwhile, prices are holding up most strongly for first-time-buyer type properties in more affordable areas, which are set to be less affected by the stamp duty changes, as most first-time-buyer homes are well under the resuming £300,000 tax threshold. 

Prices for typical first-time-buyer homes in the North East are up by 1.0% this month, starkly contrasting this month’s national 1.7% fall across all property types.

Rightmove says there are positive signs for the 2025 market, and meaningful mortgage rate falls would be a big boost to consumer confidence and pockets, there is still caution over how next year may play out. 

There is uncertainty over how rising stamp duty may affect activity later in 2025, as well as the level of wage growth.

Tim Bannister, Rightmove’s Director of Property Science, explains:

“The stamp duty changes are a cloud over the market at the moment, with some groups much more impacted than others, and therefore keen to avoid the additional charges.

“After the important first three months of the year in 2025, a lot depends on how quickly normal activity is resumed with higher stamp duty in England.

“A Bank Rate cut and some mortgage rate falls early on in the year would help to settle the market and provide a boost to sentiment and consumer confidence.” 

Kindly shared by Estate Agent Today