Rightmove Urges Stamp Duty Reform Amid Rising First-Time Buyer Costs
Rightmove has recently urged the Government to reform Stamp Duty, highlighting the increasing financial burden on first-time buyers. Since the temporary relief ended a year ago, these buyers are now facing an average additional cost of £4,600.
Impact of Stamp Duty on First-Time Buyers
According to Rightmove, the Government has accrued approximately £307 million extra in Stamp Duty from households in England, translating to an average of £4,618 more per first-time buyer. The total Stamp Duty bill for first-time buyers over the last year reached £408 million, a significant increase compared to £101 million the year prior.
Changes to the First-Time Buyer Threshold
The threshold for first-time buyers was reduced in April 2025 from £425,000 to £300,000. This change has notably affected home availability:
- Prior to the threshold adjustment, 62% of homes for sale were exempt from Stamp Duty for first-time buyers.
- This figure has since fallen to just 41%.
Data reveals that a substantial portion of the Stamp Duty costs paid by first-time buyers originates from London, with most remaining costs coming from southern regions of England.
Challenges Facing First-Time Buyers
Colleen Babcock, Head of Partner Marketing at Rightmove, emphasized the difficulties first-time buyers are encountering. She noted the challenges posed by rising mortgage rates and increasing rental prices, which complicate saving for a home. Babcock stated, “A reduction in up-front moving costs would be highly beneficial for first-time buyers.”
Calls for Reform from Industry Leaders
Nathan Emerson, CEO of Propertymark, voiced support for Stamp Duty reforms as well. He stressed that the increased costs further strain first-time buyers amid already pressing affordability issues. Emerson remarked that the threshold reduction has not only escalated upfront expenses but has also limited suitable home options, particularly in higher-value regions. He advocates for a review of Stamp Duty to introduce more flexible or regionally aligned thresholds, thereby enhancing support for first-time buyers and facilitating greater housing mobility.
