Leeds Building Society estimated that an additional 21% of first-time buyers in England will face paying Stamp Duty when a freeze on thresholds is removed next week, with the total rising to 37%.
Currently, first-time buyers pay Stamp Duty on homes costing more than £425,000, but from 1st April, that will reduce to £300,000.
The society has assessed 2024 market-wide mortgage data and projects that an additional 59,400 annual home purchases are projected to become subject to the tax in England, alongside 43,000 purchases where taxes will be higher.
The changes mean that 85% of first-time buyers in London would be subject to the charges, along with 55% in the South East, and 49% in the East of England.
The changes will also impact 30% in the South West, 16% in the West Midlands, 15% in the East Midlands, 13% in the North West, 9% in Yorkshire and the Humber, and 6% in the North East.
Matt Bartle, director of mortgages at Leeds Building Society, said: “We all know the value that having a place to call home can add to our lives.
“As a mutual, we were set up 150 years ago to help people own their own home and save for their future, creating a sense of belonging in communities across the country.
“This new analysis highlights the impact of changes to Stamp Duty will have on aspirational homeowners.
“We’ll continue to do everything we can to put homeownership within reach of more people, generation after generation.”
Martin Temple, economist at Leeds Building Society, said: “We are seeing activity above the expected level at this time of year, as buyers look to complete on any purchases ahead of the changes to Stamp Duty Land Tax at the beginning of April.
“Although the outlook for the housing market remains broadly positive, with expected reductions in interest rates later this year, these changes represent another barrier for first-time buyers in the most unaffordable parts of the country.”
