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Labour set to scrap lower stamp duty thresholds for first-time buyers
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2 min read
Fri Oct 18 2024
Labour set to scrap lower stamp duty thresholds for first-time buyers  - Image

The current threshold of £425,000 is to be dumped in the upcoming Budget.

Chancellor Rachel Reeves is set to scrap the lower stamp duty threshold for first-time buyers in her Budget on October 30, which will cost housebuyers up to £2,500.

A report in The Times states that the government will not extend the threshold increase, which is set to end next March, at which these buyers start paying stamp duty.

Currently, first-time buyers pay no stamp duty tax for home purchases under £425,000. This was raised from £300,000 as part of the Liz Truss mini-Budget in September 2022.

The change is expected to raise £1.8bn a year by 2029-30 and will have a particular impact on buyers in London and the South East. According to Rightmove, the average property price in these areas is £694,906 and £483,780 respectively.

Homes priced under £250,000 are not liable for stamp duty, with the typical cost of a first-time buyer property currently standing at £226,868.

Stamp duty on primary residencies is charged at 5% of the purchase price for homes between £250,000 and £925,000, 10% for properties between £925,001 and £1.5m and 12% above that.

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