Thousands of first-time buyers face a tense few weeks of praying they get the keys to their new home before being clobbered by stamp duty from April 1.
The countdown to March 31 will be all the more stressful for those would-be homeowners waiting to complete a move around London, where many starter homes teeter on the brink of the tax increase.
And, despite properties in the capital having an average price tag of £548,393, there are five boroughs where flats sneak in just under the £300,000 stamp duty threshold.
In October last year, the Chancellor Rachael Reeves decided not to extend the freeze on stamp duty thresholds, meaning a return to the levels in place before the 2022 mini-budget.
Movers currently pay stamp duty if their property costs more than £250,000. But from April 1, buyers will have to pay a 2 per cent charge on all home purchases priced from £125,000 to £250,000.
The changes will be harder for first-time buyers who currently pay no stamp duty on properties up to £425,000 and five per cent on everything above. This threshold falls to £300,000 after March 31.
The Kent town of Ashford – just 39 minutes by train into London – is proving particularly popular with first-time buyers at the moment, with small homes being snapped up in less than a month.
Terraced houses, sold through Purplebricks, are taking an average of 29 days to go from being listed to being sold subject to contract (SSTC). The average terraced home in the town costs £278,407.
And, flats in Sutton are also moving fast too. Properties sold through Purplebricks in the south London borough are going from listed to SSTC in an average of 56 days.
The countdown to March 31 will be all the more stressful for those would-be homeowners waiting to complete a move around London, where many starter homes teeter on the brink of the tax increase
In October last year, the Chancellor Rachael Reeves decided not to extend the freeze on stamp duty thresholds, meaning a return to the levels in place before the 2022 mini-budget
Flats in the area, where trains into central London take just 33 minutes, average £292,897.
In 2024, a third (33 per cent) of adults aged 18 to 24 still lived with their parents. This may be no surprise given the average age of a first-time buyer in the UK is 33 years and eight months.
There were 293,339 first-time buyers in the UK in 2023, down 21 per cent from 369,870 first-time buyers in 2022, suggesting it is becoming increasingly hard to secure that first set of door front keys.
The average property price for a first-time buyer in 2023 was £288,136 while the average first-time buyer deposit was £53,414, equating to 19 per cemt of the total purchase price.
Jo Pocklington, Managing Director of Purplebricks Mortgages said: ‘While the stamp duty changes on April 1 might put off some first-time buyers looking to buy in or around London, there are still plenty of potential starter homes within an easy commute of the big city.’
Using House Price Index and Purplebricks data, Britain’s biggest online estate agent has compiled a top 10 areas where first-time buyers can secure a small home in or around London, which may not be liable for stamp duty fees after March 31.
Maidstone
Maidstone is the largest town in Kent and is just a 53-minute train ride from the heart of London.
The average price for a terraced home is £295,402, meaning it is a very serious location for first-time buyers to consider if they have to make it into a London office at least a couple of times a week.
According to Purplebricks data, terraced homes in Maidstone are on the market for just under four months, averaging 110 days from listing to SSTC.
Currently on the market with Purplebricks is a Victorian terraced house in Allen Street priced at £280,000.
The two-bed property, which is just a short walk from Maidstone town centre and stations, boasts two reception rooms, an upstairs and a converted cellar.
This two-bed property, which is just a short walk from Maidstone town centre and stations
The plush property boasts two reception rooms, an upstairs and a converted cellar
Basingstoke & Deane
While Basingstoke and Deane may be 50 miles outside London, commuters can still reach the capital in under an hour by train.
Terraced homes in the Hampshire district average £294,587, which is still crucially lower than the April 1 stamp duty threshold for first-time buyers.
And, these terraced properties are moving fast, with the average time spent on the market less than two months or 51 days from being listed to SSTC.
Currently on the market is a 1820s end-of-terrace in Pyotts Hill area of Basingstoke comes with a £300,000 price tag, which is bang on the stamp duty threshold.
The charming period property is on the edge of the historic village of Old Basing, which is part of a conservation area due to the historic brick-built homes.
Currently on the market is a 1820s end-of-terrace in Pyotts Hill area of Basingstoke comes with a £300,000 price tag, which is bang on the stamp duty threshold
The charming period property is on the edge of the historic village of Old Basing, which is part of a conservation area due to the historic brick-built homes
Ashford
Ashford offers a slower pace of home life with the convenience of a 38-minute train ride in the capital and direct trains to Paris in under two hours.
Smaller homes in the Kent town – formerly the UK’s Eurostar primary hub – are proving particularly popular, with terraced properties being snapped up in under a month.
The average terraced home costs £278,407 and these ideal starter homes go from being listed to SSSTC in an average of 29 days, according to Purplebricks data.
A contemporary three-bed townhouse on the market is just a short walk from Ashford International Station and is on the market for £300,000.
This contemporary three-bed townhouse on the market is just a short walk from Ashford International Station
The home is a stylish, modern setting and is on the market for just £300,000
Witham
The Essex town of Witham is a good spot for London commuters with Greater Anglia trains into Liverpool Street in 43 minutes.
The typical terraced home in this rural town asks for a price of £284,917.
A modern three-bed home, near Witham station, is currently on the market for £300,000.
A modern three-bed home, near Witham station, is currently on the market for £300,000
The typical terraced home in this rural town asks for a price of £284,917
Braintree
Despite being another location more than 50 miles outside London, Braintree is commutable by train in just over an hour.
Terraced homes in the Essex town steeped in medieval history cost around £275,466, and tend to sell in under four months, or 117 days from being listed to SSTC, according Purplebricks data.
At the moment, a three-bed semi-detached home, located between the town centre and Braintree Shopping Outlet village, is on the market for £295,000.
At the moment, a three-bed semi-detached home, located between the town centre and Braintree Shopping Outlet village, is on the market for £295,000
Terraced homes in the Essex town steeped in medieval history cost around £275,466, and tend to sell in under four months
Rochester
Rochester is about 30 miles southeast of London and takes a little over half an hour to get you into the capital by train.
The historic town, which has Saxon and Roman heritage, is a popular spot for tourists visiting both Rochester Castle and the Cathedral.
The average terraced house in the town costs £271,459 and properties tend to be on the market for little over three months, or 98 days from being listed to SSTC, according to Purplebricks data.
A three-bed semi-detached terrace in the ‘Troy Town’ area of Rochester comes with a price tag of £225,000 – well under the £300,000 stamp duty threshold for first-time buyers.
This three-bed semi-detached terrace in the ‘Troy Town’ area of Rochester comes with a price tag of £225,000
Ready to be kitted out with furniture, it is up for well under the £300,000 stamp duty threshold for first-time buyers
Milton Keynes
Built in the 1960s, Milton Keynes quickly became one of the UKs ‘New Towns’ to relieve housing congestion in London – it was granted ‘city status’ in 2022.
Situated in Buckinghamshire, the modern city is 50 miles outside London but the fast train allows commuters to zoom into London in just half an hour.
The latest data shows that the average price of a terraced house in ‘MK’ is just £267,470 and these starter homes are taking an average of 73 days to go from being listed to SSTC.
On the market now is a three-bed family home in the Bradville area of the city with a price tag of £270,00.
On the market now is a three-bed family home in the Bradville area of the city with a price tag of £270,00
The latest data shows that the average price of a terraced house in ‘MK’ is just £267,470 and these starter homes are taking an average of 73 days to go from being listed to SSTC
Luton
Luton, in Bedfordshire, is 32 miles north of London with a commuting time of just 25 minutes by train.
First-time buyers can call a terraced home their own for around £260,099 and these properties tend to shift in just over two months, or 65 days from listing to SSTC, according to Purplebricks.
A three-bed ‘doer-upper’ period property is on the market for £250,000 with Purplebricks.
This three-bed ‘doer-upper’ period property in Luton is on the market for £250,000 with Purplebricks
First-time buyers can call a terraced home their own for around £260,099 and these properties tend to shift in just over two months
Sutton
The borough of Sutton has been part of London since 1965 and is just 13 miles from the centre of the capital, which can be reached by train in around half-an-hour.
Sutton is an appealing location for first-time buyers looking to avoid stamp duty after April 1 because the average flat costs £292,897.
Flats in the area are on the market for less than two months, or 56 days from being listed to SSTC, according to Purplebricks data.
Just 0.4 miles from the station and in a quiet cul-de-sac, is a one-bed maisonette on the market for £300,000.
Just 0.4 miles from the station and in a quiet cul-de-sac, is a one-bed maisonette on the market for £300,000
Flats in the area are on the market for less than two months, or 56 days from being listed to SSTC, according to Purplebricks data
Croydon
Croydon’s reputation for crime has improved over the last decade as the area has become more attractive to city workers thanks to 12-minute train links into London Bridge.
The average flat price is £297,175 and properties spend an average of four months on the market, or 111 days from being listed to SSTC, according to Purplebricks data.
A second-floor two-bed flat near Croydon University Hospital is on the market for £290,000.
A second-floor two-bed flat near Croydon University Hospital is on the market for £290,000
The average flat price is £297,175 and properties spend an average of four months on the market, or 111 days from being listed to SSTC, according to Purplebricks data
