Record surge in first-time buyers despite stamp duty rise

The figures – from Hamptons International – come despite the share of first-time buyers set to pay stamp duty nearly tripling in April, rising from nine percent to 26%. Hamptons estimates the end of the stamp duty holiday will cost first-time buyers an extra £403m in tax during 2025.

Overall, one percent more sales were agreed in Great Britain in the first quarter of this year when compared with the first quarter of 2024 – with first-time buyer numbers increasing by nine percent.

This increase can be attributed to the fact that some of the biggest falls in mortgage rates have come from loans requiring small deposits – something typically used by first-time buyers.

Hamptons’ researchers explained: "For example, a first-time buyer who purchases a £400,000 home with a 10% deposit will be able to borrow around £19,000 more than in November due to mortgage rates falling, more than offsetting the £5,000 stamp duty increase."

Interestingly, the biggest uplift in first-time buyers has come in the £300,000 or more price bracket – making up 26% of all purchases made in this price bracket in the first quarter of this year, up four percent year-on-year and more than double the proportion from 10 years ago.

Regionally, Wales and London saw the largest increases in the share of first-time buyers – with new homeowners making up half of all buyers in the capital, the highest since at least 2007.

The share of homes in Britain bought by a mover, however, has continued to decline, reaching 56% in the first three months of 2025. There was also a fall in the proportion of homes bought by investors, making up 10% of all buyers in the first quarter of this year – the lowest level since 2008.