According to Revolution Brokers, there are only six areas in the UK where first-time buyers are ineligible for stamp duty relief as the price of the average first home is valued at over £625,000.
These areas include Kensington and Chelsea, the Cities of Westminster and London, Camden, Hammersmith and Fulham and Islington. This accounts for around two per cent of the total market.
The report added that a further seven per cent of local authorities, around 21, across England will see the average first-time buyer pay the reduced five per cent level of stamp duty due to the average price of a first-time buyer home falling between the £425,001 and £625,000 threshold.
Kwarteng confirmed in his mini Budget last week that the level at which first-time buyers pay stamp duty will increase from £300,000 to £425,000.
First-time buyers can also access relief, where they have five per cent stamp duty on properties less than £625,000, which is up from £500,000 previously.
First-time buyers benefit
Founding director of Revolution Brokers, Almas Uddin, said: “The nation’s first-time buyers have benefited to a much greater extent from the latest cut to stamp duty and quite rightly so, as they have a far harder task to overcome in securing that first foot on the ladder compared to those making that second or third step.
“While it certainly won’t help them save that all important mortgage deposit, or with the escalating cost of their monthly mortgage repayment, a vast number will, at least, be able to buy without the additional hurdle of a stamp duty bill.”
