Particle.news
Download on the App Store

HMRC Data Puts Average First-Time Buyer Stamp Duty at £4,073 for 2024–25, With Lower Relief Now in Force

Reduced thresholds increase upfront costs for purchases over £300,000, concentrating pressure in London.

Overview

  • New HMRC figures released via FOI show more than 13,000 first-time buyer relief claimants paid £5,000 or more in stamp duty last year, while roughly 12,000 paid under £2,000.
  • From April 2025, the nil-rate band for first-time buyers fell from £425,000 to £300,000 and the preferential ceiling dropped from £625,000 to £500,000.
  • Purchases above £500,000 no longer qualify for first-time buyer relief and are charged at standard stamp duty rates.
  • Connells Group reports around 26% of first-time buyers purchased above £300,000 last year, rising to about 77% in London, where many may need roughly an extra £7,000 for stamp duty.
  • The data cover England and Northern Ireland and only relief claimants; the Government is consulting on a new first-time-buyer savings product, with Lifetime ISAs remaining available meanwhile.