First-time buyers are far more concerned about deposits, mortgage access and upfront costs than changes to the property tax system, research from LRG reveals.
In its first dedicated sales report, estate agency group LRG surveyed more than 300 buyers and sellers across England and Wales.
While 95% agreed that more support is needed for first-time buyers, stamp duty relief was the top priority for fewer than a quarter of respondents (23%).
Instead, 72% said other measures would have a greater impact on their ability to buy, including lower-deposit mortgage products, faster mortgage approvals, help with legal fees and access to more affordable new-build homes.
BIGGER OBSTACLES
The findings challenge the prevailing narrative as Chancellor Rachel Reeves prepares to deliver the Budget.
Rumoured proposals under consideration include shifting the stamp duty burden from buyers to sellers for homes above £500,000, and potentially replacing the tax with an annual property levy.
But LRG’s research indicates such changes would not address the biggest obstacles facing first-time buyers today.
COMPLEX BUYING ROUTES
The report also highlights the increasingly complex routes buyers are taking to get on the ladder.
Half of first-time purchasers are relying on joint ownership arrangements, 43% need financial help from family, just over a fifth are turning to new-build incentives, and around one in seven is exploring shared ownership schemes.
AFFORDABILITY CONCERNS
Neil Louth, Chief Executive of The Acorn Group, part of LRG, says: “First-time buyers aren’t just price-sensitive; it’s about affordability impacted by the current interest rate level and the ability to save deposits.
“Due to the high cost of renting restricting their disposable income or the Bank of Mum and Dad drying up, any government incentive for first-time buyers to deliver future homeownership is vital.
“Stamp duty relief is very important as it’s a huge cost to buyers in general when purchasing their first home or moving home. Stamp duty will play a major part in their decision process.”
FIRST-TIME BUYER SUPPORT
Industry pressure for practical assistance has intensified in recent weeks. Barratt Redrow, one of the UK’s biggest housebuilders, has urged ministers to introduce a new support scheme for first-time buyers, warning that housing targets will remain unreachable without intervention.
Yet most Budget speculation so far has focused on Stamp Duty rather than measures such as equity loans or targeted support for new-build buyers.
NEW-BUILD INCENTIVE
Louth, who also heads LRG’s national new homes division, says a government incentive for new-build purchases – particularly apartments – is urgently needed.
“This is reducing the number of sales being agreed and, therefore, developers are delaying building new homes, which is also impacted by construction costs. As a result, the profitability of projects becomes unviable. Ultimately, this will impact the government’s promise to build 1.5 million homes.”
Survey respondents also highlighted the practical realities of stretching affordability. One told LRG: “The property needs to be liveable. As a first-time buyer, getting a deposit is almost impossible, so having a place that’s ready to move into without serious renovation work is essential.”
As the Chancellor finalises her Autumn Budget, the findings suggest that measures aimed solely at stamp duty reform may fall short of what aspiring homeowners say they need most.
