According to analysis from Yorkshire Building Society, this is double the average year-on-year growth recorded for the same period since stamp duty incentives were introduced in 2017.
On 1 April, the first-time buyer stamp duty threshold was changed from £425,000 to £300,000, meaning more first-time buyers are eligible to pay the tax.
The report stated that in the first quarter of this year, the ratio of first-time buyers to overall purchasers also hit an all-time high at 55.75%, compared to 49.78% eight years ago.
Max Shepherd, group economist for Yorkshire Building Society, said: “First-time buyer transaction levels to the end of March 2025 were bolstered by people rushing to beat the 1 April deadline.
“However, given the first-quarter figure has risen steadily since the incentive was introduced in 2017, the risk now is that the higher purchase tax, coupled with high house prices and other costs, add up to a cliff-edge moment for a group of borrowers who power the entire market.”
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Shepherd continued: “Some first-time buyers will have missed the 31 March deadline for saving money and been disappointed. Others are coming to terms with having to save up even more to get purchase-ready, amidst already-stretched affordability.
“This means we could see activity tail off from Q2, and it just remains to be seen by how much. The added danger is that if this change also deters homemovers, there will be fewer homes available for first-time buyers to buy, which would in turn increase property prices further out of their reach. Concerted industry action is needed to ensure this unwelcome change doesn’t send the positive momentum built over the past eight years into reverse.”
