We are making a manifesto commitment to cut Stamp Duty for first-time buyers, securing the future of home ownership for thousands more first-time buyers.
- Owning a home makes people more financially secure and gives them a stake in society. As the party of the property-owning democracy, we want to give more people the chance to buy their own home.
- That is why we are making a manifesto commitment to ensure the vast majority of first-time buyers pay no Stamp Duty at all by increasing the threshold from £300,000 to £425,000 and increasing the threshold at which first-time buyers can access Stamp Duty relief.
- Together with our new Help to Buy scheme, this clear plan will secure the future of home ownership for thousands more first-time buyers. Under Labour, some first-time buyers would pay over £11,000 more in Stamp Duty, taking us back to square one.
We are doing this by:
- Raising the threshold at which a first-time buyer pays Stamp Duty from £300,000 to £425,000, meaning the majority of first-time buyers do not pay Stamp Duty. We will ensure the vast majority of first-time buyers pay no Stamp Duty at all, lowering the upfront costs of buying a first home. We will make permanent the increase to the threshold at which first-time buyers pay Stamp Duty to £425,000 from £300,000, which we introduced in 2022.
- Permanently increasing the upper threshold for first-time buyers accessing Stamp Duty relief. These thresholds were temporarily increased in 2022 and are due to expire at the end of March 2025.
- Saving first time buyers thousands of pounds in upfront costs, enabling them to buy a home more quickly. We expect this measure to generate 5,000 additional first-time buyer transactions a year by 2029. It will save first-time buyers up to £11,250. Without this measure, it has been projected that 30 per cent of first-time buyers will be paying more Stamp Duty.
- Launching a new and improved Help to Buy scheme, helping more first-time buyers take their first step onto the housing ladder. Under the new scheme first time buyers will be offered a 20 per cent equity loan towards a new build property, enabling them to buy their first home with a five per cent deposit. The scheme will be available to hundreds of thousands of families.
- Building on our progress of supporting 892,000 families to buy their own home since 2010, thanks to Government support. Thanks to Government-backed schemes such as the Right to Buy scheme and the Help to Buy: Mortgage Guarantee scheme, 892,000 families have bought their own homes since 2010.
Our plan will mean the vast majority of first-time buyers pay no Stamp Duty. Those buying a home between £425,000 and £625,000 will also get relief. This will help young people to buy a home in which they can start a family, particularly in areas of the country where it is hardest to get onto the property ladder.
