0:01 AM, 27th December 2024, About 16 hours ago
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First-time buyers (FTBs) faced a challenging property market in 2024, but next year could see a surge of buyers before the stamp duty deadline in April.
According to Moneybox, 34% of first-time buyers are planning to become homeowners in 2025.
Moneybox also reveals that 71% of aspiring FTBs plan to buy in the next two years.
The Chancellor Rachel Reeves Autumn budget offered little help to first-time buyers, with 76% of FTBs calling for more government support.
The stamp duty change has also caused panic amongst many first-time buyers as they rush to complete before changes.
The Budget confirmed that, from April next year, stamp duty thresholds in England will be lowered. For first-time buyers, the exemption threshold will drop from £425,000 to £300,000, while for standard residential properties, it will fall from £250,000 to £125,000.
First-time buyers also faced huge challenges in 2024 with more than half of aspiring FTBs saying they had saved less than they had hoped towards their deposit, and 28% said they’d had to dip into their deposit savings due to an unexpected emergency.
Felicity Hollow, head of mortgages at Moneybox, says first-time buyers have proved to be adaptable.
She said: “2024 has been a year of resilience and determination for first-time buyers (FTBs). Despite challenging market conditions, this community has demonstrated a remarkable ability to adapt and are increasingly making informed, well-planned decisions. Since the pandemic, FTBs have faced one challenge after another, yet their focus on planning has allowed them to navigate this uncertainty with greater confidence.
“Our customer research highlights that even those in the early stages of their homebuying journey are fully invested in achieving their goal, taking advantage of schemes like the Lifetime ISA (LISA) to build their deposits. As a result, many FTBs will have their deposit saved and will choose to wait patiently for the right time to enter the market.”
Brian Byrnes, head of personal finance at Moneybox, says many first-time buyers are rushing to buy a property before stamp duty changes kick in.
He said: “First-time buyers are the future wealth creators of our society, and supporting them is about much more than helping people buy homes — it’s about securing the financial health and stability of generations to come.
“With the Stamp Duty relief for first-time buyers ending in March 2025, we’re already seeing a surge in activity, with a 14% increase in mortgage appointments in the four weeks following the recent Budget.
“However, many aspiring FTBs who won’t be in a position to complete before the deadline face increased financial challenges. With the average FTB property price of £227,191 edging close to the £250,000 Stamp Duty threshold — and far exceeding it in areas like London, where the average is £443,550 — it’s clear that more must be done to address the affordability gap.”
