Despite this, Government figures show first-time buyers are rushing to complete their purchases ahead of the April deadline, where the ‘nil rate’ Stamp Duty band will reduce from £425,000 to £300,000 for first-time buyers and from £250,000 to £125,000 for existing home owners.
As a result, only 8% of homes in London will remain exempt from Stamp Duty after April.
This comes as the latest figures from Rightmove reveal that first-time buyer demand has increased by 31% in London over the last 12 months alone as more buyers try and secure their property ahead of the shift in Stamp Duty, with similar increases also prevalent in the south-east [24%] and east [32%] of England.
When questioned about whether they would leverage any Government schemes to support their jump onto the property ladder, 32% of first-time buyers advised they would consider Shared Ownership, 46% the First Homes Scheme and 44% Rent to Buy.
Furthermore, a massive two thirds advised they would choose property over location to secure the first home of their dreams.
Other key takeouts from the research include:
- 72% of first-time buyers are purchasing their first home using savings, whereas 16% are using a gifted deposit and 17% inheritance.
- Property budgets vary significantly amongst survey respondents, ranging from £100K - £150K [17%] and £150K - £200K [17%] to £250K - £300K [15%] and over £350K [13%].
- Over half [53%] of first-time buyers with a budget of £250k+ are looking to leverage the First Homes Scheme to acquire their first home, with 38% planning to utilise the Shared Ownership Scheme.
- Conversely, 28% of individuals looking to purchase a property under £250k are looking to acquire their first home on their own.
- 62% of first time-buyers plan to utilise self storage to aid the moving process once they have found their dream home.
- 29% of first-time buyers are looking to ‘upsize’ their property when purchasing their own home, with 25% looking for a property of a similar size to their rented accommodation.
Discussing this latest research, Mehran Charania, Director of Ready Steady Store, said:
“The UK property market has been incredibly tough for first-time buyers in recent years, with volatile mortgage rates, high house prices and an ongoing cost of living crisis.
“However, this latest research showcases the sheer appetite amongst first-time buyers to get onto the property ladder – and quickly – ahead of the change in Stamp Duty. Given the 28% rise in property sales from February 2024 to February 2025, all eyes will be on how the market shifts post-April.
“Overall, despite viable concerns over house prices, mortgage rates and Stamp Duty, this latest data implies that the UK property market could continue to grow and develop during 2025, where we at Ready Steady Store are here to support first-time buyers, second steppers and all other movers alike!”