Rightmove is warning that time is running out for first time buyers wanting to beat a looming stamp duty deadline, and who may be purchasing homes sold by landlords. 

A temporary cut to stamp duty will end on 31 March 2025 which will see the property limit for first-time buyers to get a stamp duty ‘break’ lowered.

Rightmove’s real-time data is capturing the impact on different groups of movers and the latest snapshot identifies signs that sellers of smaller properties in higher-priced areas are trying to trade up or just sell before the April 2025 deadline to avoid the higher stamp duty charges, despite now needing to act very quickly. 

In the last four weeks, the number of sellers of typical first-time buyer homes with two bedrooms or fewer in London coming to market is up by 20%, the most of any regional market sector. 

In second place is the South East up 16%, which is also the second most expensive region. 

Meanwhile, prices are holding up most strongly for first-time-buyer type properties in more affordable areas, which are set to be less affected by the stamp duty changes, as most first-time-buyer homes are well under the resuming £300,000 tax threshold. 

Prices for typical first-time-buyer homes in the North East are up by 1.0% this month, starkly contrasting this month’s national 1.7% fall across all property types.

Rightmove says there are positive signs for the 2025 market, and meaningful mortgage rate falls would be a big boost to consumer confidence and pockets, there is still caution over how next year may play out. 

There is uncertainty over how rising stamp duty may affect activity later in 2025, as well as the level of wage growth.

“The stamp duty changes are a cloud over the market at the moment, with some groups much more impacted than others, and therefore keen to avoid the additional charges” explains Tim Bannister Rightmove’s Director of Property Science.

“After the important first three months of the year in 2025, a lot depends on how quickly normal activity is resumed with higher stamp duty in England. A Bank Rate cut and some mortgage rate falls early on in the year would help to settle the market and provide a boost to sentiment and consumer confidence.” 

Meanwhile the Simply Conveyancing firm is urging anyone involved in a transaction with a first time buyer to act quickly – and not wind down for Christmas. 

Sue Bence, chief operating officer, says: “With stamp duty changes on the horizon, it’s crucial for buyers to act swiftly. Having an offer accepted and legals in motion before Christmas will give home movers the best chance to avoid the additional financial burden of the new thresholds.”

The national conveyancing firm adds that there has already been a significant uptick in transactions, and expects to see plenty more business before the holidays start.

Bence continues: “Since the October Budget, when it became clear that the previous temporary stamp duty thresholds would not be extended, and with interest rates gradually steadying, we have seen a significant uptick in transactions as people race to beat the deadline.

“While this is positive on the whole, it puts additional strain on the entire transaction ecosystem from lenders to agents, local authorities and conveyancers, so buyers should be mindful of this to avoid disappointment and being hit with additional moving costs.”