Looking at average purchase prices for first-time buyers, we can effectively map out where the average first-time buyer is due to pay stamp duty for the first time next year.
Here, we can see that London and the South East will be disproportionately affected by the changes, with the average purchase price in these areas exceeding the lower £300,000 nil rate threshold. In total, the average sales price for first-time buyers currently exceeds the new threshold in 91 local authorities.
Interestingly, there are two areas that fall outside of this categorisation, such as South Hams in Devonshire, and Trafford, which sits just outside Manchester.
In Trafford, the average price for first-time buyers is £317,000, whereas the figure for South Hams stands at £321,000, meaning those about to get onto the housing ladder in those two local authorities are likely to just face prices that just edge over out of the nil-rate threshold.
Top 10 areas where first-time buyers pay the most stamp duty
Looking at where buyers will pay the most stamp duty, Kensington and Chelsea top the list, with the average first-time buyer here paying £45,300 in stamp duty on their property purchase. If buyers complete before the April deadline, they’ll pay £3,750 less.Buyers in Richmond upon Thames, Wandsworth, Hackney, Haringey and Merton will have to stomach some of the biggest increases in the stamp duty bill, with buyers here expected to pay £11,250 more from April than they would previously. This is because, from April next year, first-time buyers purchasing a property over £500,000 won’t qualify for any stamp duty relief.
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