Zoopla predicts that the share of first-time buyers needing to pay stamp duty will rise from 21% to 42%, while the proportion of existing homeowners liable for stamp duty will increase from 49% to 83%.

Prospective homebuyers in England and Northern Ireland have until the end of March 2025 to finalize purchases before significant increases in stamp duty costs take effect on April 1, 2025.

Colleen Babcock, a property expert at Rightmove, noted that over half a million homes are in the process of completing legally, with urgency for buyers to finalize paperwork before the deadline.

Mortgage lenders are responding to the impending changes with cash incentives; for example, Yorkshire Building Society offers up to £6,250 cashback for first-time buyers.

Starting April 1, 2025, the zero-rate threshold for first-time buyers will decrease from £425,000 to £300,000, while the threshold for home-movers will drop from £250,000 to £125,000, leading to higher stamp duty costs for many.

In London, first-time buyers could face up to £11,250 more in stamp duty due to rising property prices, with only 9% of homes under the new £300,000 threshold compared to 27% under the current one.

In response to the changing market conditions, lenders like Nottingham Building Society and Skipton Building Society are offering new mortgage deals with cashback incentives, and Santander UK has relaxed its mortgage affordability criteria, allowing some borrowers to qualify for larger loans.

February 2025 saw a surge in home sales, with 108,250 transactions, a 28% increase compared to February 2024, driven largely by the approaching deadline for the stamp duty changes.

Richard Donnell from Zoopla indicated that buyers are likely to negotiate offers to share the burden of increased costs with sellers, affecting overall house price growth in 2025.

Overall, the stamp duty changes are expected to generate an additional £1.1 billion annually for the government.

Research by Barclays indicates that home buyers anticipate an average of £6,512 in additional fees if they miss the deadline, with many citing deposit costs as a major barrier to homeownership.

First-time buyers purchasing homes around £625,000 will experience substantial financial pressure if they miss the deadline for the current rates.