Martin Lewis urges first-time buyers to 'act now’ and sets them deadline

Martin Lewis urges first-time buyers to 'act now’ and sets them deadline

by · Birmingham Live

Martin Lewis has warned first-time buyers to take action now. The ITV The Martin Lewis Money Show star had a warning for anyone who is looking to get on the property ladder and urged them to act now, in a bid to save money on stamp duty.

First-time buyers are currently exempt from paying stamp duty on properties priced up to £425,000. If a property is more expensive they only pay tax at 5 per cent on the portion above £425,000 and up to £625,000 after the Labour Party Budget.

The lower limit for the first-time buyer stamp duty exemption was temporarily increased in 2022. But the chancellor Rachel Reeves, who delivered her Budget on Wednesday (October 30), has now announced it will revert to £300,000 in April.

READ MORE UK households will wake up to £11,250 bill after stamp duty rule change

Speaking on a Budget special of The Martin Lewis Money Show on 31 October, Mr Lewis - the Money Saving Expert founder - urged: “If you’re looking to buy now, you want to get it done before next April as it is going to get a lot more expensive.”

Stamp Duty rates are increasing for those buying a second home or an additional property in England or Northern Ireland. They're currently three percentage points higher than standard Stamp Duty rates. Although not referred to in Wednesday's Budget, there will be further changes to stamp duty in England and Northern Ireland from 1 April 2025.

These changes will impact virtually all homeowners, including first-time buyers, home-movers and second-home buyers, because the stamp duty threshold will drop from £250,000 to £125,000 and first-time buyer stamp duty relief will drop from £425,000 to £300,000.

Under the Right to Buy scheme, some council and housing association tenants in England are able to buy their homes at a discounted price. Currently, these discounts are capped at £102,400, or £136,400 if you live in London.

From 21 November 2024, this discount will be cut to £16,000, or to £38,000 for homes in London.