First-time buyers in England are expected to face a 20% reduction in available properties without Stamp Duty next April, according to research by eXp UK.
The current Stamp Duty Land Tax (SDLT) threshold will drop from £425,000 to £300,000, leading to a significant decrease in SDLT-free properties by over 90,000.
eXp UK analysed over 450,000 listings and found that 62% of homes for sale are currently priced below the £425,000 threshold, allowing purchases without Stamp Duty.
With the threshold dropping to £300,000, only 42% would be tax-free, a reduction impacting first-time buyers’ choices.
Some cities may experience sharper reductions than the national average. In Bristol, SDLT-free properties could fall from 69% to 26%, a 34% drop.
Leicester may see a 26% reduction, while Brighton could experience a decrease of 23%. Areas like Liverpool and Bradford are likely to see smaller drops of 13% and 14%, respectively.
Adam Day, head of eXp UK, said: “There was hope that last week’s Autumn Budget would extend the current stamp duty relief given to first-time buyers, at the very least.
“Unfortunately, this wasn’t the case and, as a result, the nation’s first-time buyers now need to prepare themselves for a significant reduction in the number of homes available to them that would come with the benefit of no stamp duty owed.
“Those currently on the hunt still have time to beat next year’s deadline but they need to get their skates on and complete within the next five months.”
