In a written question to the Treasury, Liberal Democrat MP Freddie Van Mierlo asked the Chancellor whether she had made an assessment of the potential impact of recent changes to stamp duty thresholds on the number of first-time buyers entering the market.
The Conservative government introduced a temporary change to stamp duty in 2022, with the nil-rate threshold moved to £250,000, up from £125,000, and the nil-rate threshold for first-time buyers changed to £425,000, a rise from £300,000.
The maximum purchase price for first-time buyer relief was cut from £625,000 to £500,000.
These changes were reversed on 1 April this year, with many rushing to complete before the new stamp duty rates came in.
James Murray, Exchequer Secretary, said recent changes to stamp duty thresholds were the result of a policy introduced by the previous government.
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He added that HMRC analysis estimated that there will be around 4,000-6,000 fewer first-time buyer transactions per year between 2025/26 and 2029/30.
Murray continued on to say that the government had increased stamp duty for additional dwellings from 3% to 5% in the Budget last year, and this would ensure that those looking to move home or buy their first property would have a “greater advantage over second home buyers, landlords, and companies purchasing residential property”.
He noted that the Office for Budget Responsibility (OBR) had confirmed that increasing this rate of stamp duty for additional dwellings would lead to around 130,000 additional transactions over the next five years by first-time buyers and “other people buying a primary residence”.
