First-time buyers are currently dominating housing activity, as nearly two thirds of homebuyers are doing so for the first time, reallymoving research shows.
They accounted for 64% of homemover activity in December, as well as 63% in January.
First-time buyers have lots to lose when the stamp duty thresholds revert on 1 April. The minimum threshold where the tax is paid will move from £425,000 to £300,000 on that date.
Rob Houghton, founder and chief executive of reallymoving, said: “First Time Buyer activity increased sharply from October through to the end of last year, and has stayed high into January.
“The prospect of higher Stamp Duty bills is undoubtedly a factor, with savings of over £6,000 up for grabs if first-time buyers in London can complete before the deadline, and over £1,500 in the South East.
“The homebuying process continues to take much longer than it used to, and conveyancers have a very busy and stressful few weeks ahead of them, so many first-time Buyers will end up disappointed.
“If you’re buying at over £300,000 and you’re not already well advanced in the conveyancing process, don’t just hope for the best. Make absolutely sure you have flexibility in your budget to accommodate higher bills.”
Reallymoving warned that, with conveyancing taking five months to complete on average, first-time buyers should budget for higher stamp duty bills if they aren’t already far along in the process.
In London first-time buyers currently pay an average of pay £438,442, meaning they have the most to gain from buying before the deadline.
Those who buy the average property post-April will see their stamp duty bills increase from £672 to £6,922.
Mortgage rates fell in 2024, with the lowest available rate for a 2-year fixed rate deal currently at 4.2%, or 4.07% for a 5-year fixed rate mortgage.
A further base rate cut in February would help bring costs down further and encourage lenders to compete for business as the traditionally busy spring market approaches.