For many, buying a first home is one of the most exciting and significant milestones in life. However, timing can play a crucial role in how smooth and affordable that process turns out to be. With 2025 set to bring key changes to the UK property market, including updates to Stamp Duty thresholds, now could be the perfect moment for first-time buyers to take action. Here’s why getting started sooner rather than later could make all the difference.
Stamp Duty changes will raise costs
From 1st April 2025, Stamp Duty thresholds for first-time buyers are set to change. Currently, first-time buyers pay no Stamp Duty on properties up to £425,000.* However, this threshold will drop to £300,000 next year.* This means those purchasing homes priced between £300,000 and £425,000 will face higher upfront costs if they miss the deadline.* Acting now gives buyers the opportunity to avoid these extra expenses and make substantial savings.
Increased market activity is driving competition
With the upcoming Stamp Duty changes, many buyers are rushing to complete their property purchases before April 2025. This increased demand means properties are being snapped up quickly, and competition in popular areas is heating up. For first-time buyers, this means acting promptly could secure a better selection of properties at more competitive prices. Waiting too long might not only mean higher taxes but also fewer options in your desired location.
Mortgage rates are showing signs of stability
After a period of fluctuating mortgage rates, the market is showing signs of stabilisation. Lenders are offering more predictable and, in some cases, lower rates, giving buyers a clearer picture of their long-term financial commitments. This is also stimulating the market in all rungs of the property ladder.
Building equity sooner rather than later
Getting on the property ladder isn’t just about securing a home – it’s also about building financial stability. Property generally appreciates in value over time, and the sooner you buy, the sooner you can start building equity. Waiting could mean missing out on potential property value growth, leaving first-time buyers playing catch-up in an increasingly competitive market.
Don’t wait for the market to change
While market predictions suggest steady growth, there’s no guarantee that conditions will remain as favourable as they are now. With rising demand, changing taxes, and mortgage rate shifts, waiting could mean higher costs and increased competition. For first-time buyers, 2024 offers a valuable window of opportunity to make their move before the April 2025 Stamp Duty changes come into effect. Acting now isn’t just about avoiding higher costs – it’s about making the most of the current market conditions to secure the best possible deal.
The Mortgage Guarantee Scheme: Supporting first-time buyers
Introduced in April 2021, the Mortgage Guarantee Scheme was designed to increase the availability of 5% deposit mortgages by offering lenders a government-backed guarantee. Originally set to end in December 2022, the scheme was extended twice, with the latest announcement in the 2023 Autumn Statement confirming it will now run until June 2025. This extension ensures continued support for first-time buyers, making low-deposit mortgages more accessible and helping more people step onto the property ladder.
Boosting confidence across the housing market
While the Mortgage Guarantee Scheme primarily supports first-time buyers, its benefits ripple across the entire housing market. By enabling more people to buy homes with smaller deposits, the scheme stimulates activity in all price brackets, from starter homes to higher-value properties. This increased movement benefits sellers creating a healthier, more dynamic market. With the scheme extended until June 2025, buyers and sellers alike can approach their next move with greater confidence.
Start your home-buying journey today and take advantage of the current market conditions by booking a valuation
GOV.UK*