Zoopla has analysed first-time buyer enquiries on home for sale to identify where the current benefit will be retained.
Analysis of enquiries for property on Zoopla from first-time buyers (FTBs) over the last six months shows:
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8 in 10 FTBs searching for a home on Zoopla have been looking for homes priced under £425,000 i.e. full relief from stamp duty under current rules.
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15% of FTBs have been searching for homes between £425,000 and £625,000 and would pay partial stamp duty, assuming the current rules are extended
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7% of FTBs are looking over the £625,000 threshold and would still have to pay full stamp duty.
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FTBs searching to buy in southern England are generally having to look for higher-value homes and face paying the most stamp duty.
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Half of would-be FTBs in London would pay full or partial stamp duty if the current rules are extended.
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Richard Donnell, ZooplaRichard Donnell, Executive Director at Zoopla, says: “Our analysis of what first-time buyers are looking to buy on Zoopla shows 8 in 10 would pay no stamp duty if the current measures were made permanent.
Background on stamp duty – first-time buyer stamp duty relief was proposed to be reduced in 2025
The current thresholds for FTB stamp duty relief were planned to be cut in 2025. This would reverse changes made in the 2022 Mini budget where the threshold for full relief from paying stamp duty as a FTB was raised to £425,000 from £300,000. In addition, the maximum value for partial relief for FTBs was raised from £500,000 to £625,000.
In England and Northern Ireland there is a tax break for first-time buyers (FTBs) to reduce the cost of stamp duty. This isn’t the case in Wales and Scotland as property prices are lower and the way the tax is set most FTBs pay nothing or a very low amount
Data from HMRC shows that in England, 203,300 FTB’s claimed ‘first-time buyer relief’ from stamp duty in 2022/23 with savings of £708 million, or an average £3,500 per purchase
150,000 FTBs paid no stamp duty at all while 53,000 had to pay partial stamp duty for the purchase price above the current tax-free threshold of £425,000 up to a maximum of £625,000. Any FTB purchases above this maximum price have to pay the normal level of stamp duty with no tax relief.
First-time buyer deposits 2022 – Source ONS
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