As the Stamp Duty holiday deadline of March 31st approaches, new research from mortgage broker Mojo Mortgages reveals eye-opening insights for first-time buyers in London.
Mojo Mortgages have analysed the average house price in every Greater London borough before calculating the current Stamp Duty cost today and comparing it to the predicted Stamp Duty cost from 1st April.
Key statistics:
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The average increase in stamp duty across all London boroughs for first-time buyers will be £6,408, rising from £11,419 to £17,827.
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15 boroughs will see the maximum increase of £11,250, including popular areas like Barnet, Brent, Ealing, and Hackney.
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First-time buyers in Havering, Bexley, and Croydon, who currently pay no stamp duty, will face new charges of £11,150, £10,300, and £10,150, respectively.
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Barking and Dagenham, despite having the lowest average house price at £344,000, will still see stamp duty introduced at £7,200 for first-time buyers.
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The most expensive borough, Kensington and Chelsea, with an average price of £1,070,000, will see a relatively small increase of £2,500, from £48,250 to £50,750.
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Westminster, the second most expensive borough, will have the highest stamp duty for first-time buyers at £33,300 after the changes.
How much Stamp Duty first-time buyers will pay in EVERY London Borough from April 1st.
|
London Borough |
Average House Price |
Stamp Duty Before Deadline (until 31st March) |
Stamp Duty After Deadline (after 1st April) |
Additional Cost |
|
Barnet |
£593,000 |
£8,400 |
£19,650 |
+£11,250 |
|
Brent |
£546,000 |
£6,050 |
£17,300 |
+£11,250 |
|
Bromley |
£509,000 |
£4,200 |
£15,450 |
+£11,250 |
|
Ealing |
£542,000 |
£5,850 |
£17,100 |
+£11,250 |
|
Enfield |
£452,000 |
£1,350 |
£12,600 |
+£11,250 |
|
Greenwich |
£458,000 |
£1,650 |
£12,900 |
+£11,250 |
|
Hackney |
£588,000 |
£8,150 |
£19,400 |
+£11,250 |
|
Haringey |
£574,000 |
£7,450 |
£18,700 |
+£11,250 |
|
Harrow |
£526,000 |
£5,050 |
£16,300 |
+£11,250 |
|
Hillingdon |
£465,000 |
£2,000 |
£13,250 |
+£11,250 |
|
Hounslow |
£454,000 |
£1,450 |
£12,700 |
+£11,250 |
|
Havering |
£423,000 |
£0 |
£11,150 |
+£11,150 |
|
Bexley |
£406,000 |
£0 |
£10,300 |
+£10,300 |
|
Croydon |
£403,000 |
£0 |
£10,150 |
+£10,150 |
|
Barking and Dagenham |
£344,000 |
£0 |
£7,200 |
+£7,200 |
|
Camden |
£816,000 |
£28,300 |
£30,800 |
+£2,500 |
|
City of Westminster |
£866,000 |
£30,800 |
£33,300 |
+£2,500 |
|
Hammersmith and Fulham |
£712,000 |
£23,100 |
£25,600 |
+£2,500 |
|
Islington |
£643,000 |
£19,650 |
£22,150 |
+£2,500 |
|
Kensington and Chelsea |
£1,070,000 |
£48,250 |
£50,750 |
+£2,500 |
|
Kingston upon Thames |
£546,000 |
£14,800 |
£17,300 |
+£2,500 |
|
Lambeth |
£528,000 |
£13,900 |
£16,400 |
+£2,500 |
|
Lewisham |
£463,000 |
£10,650 |
£13,150 |
+£2,500 |
|
Merton |
£571,000 |
£16,050 |
£18,550 |
+£2,500 |
|
Newham |
£400,000 |
£7,500 |
£10,000 |
+£2,500 |
|
Redbridge |
£499,000 |
£12,450 |
£14,950 |
+£2,500 |
|
Richmond upon Thames |
£745,000 |
£24,750 |
£27,250 |
+£2,500 |
|
Southwark |
£502,000 |
£12,600 |
£15,100 |
+£2,500 |
|
Sutton |
£445,000 |
£9,750 |
£12,250 |
+£2,500 |
|
Tower Hamlets |
£472,000 |
£11,100 |
£13,600 |
+£2,500 |
|
Waltham Forest |
£504,000 |
£12,700 |
£15,200 |
+£2,500 |
|
Wandsworth |
£599,000 |
£17,450 |
£19,950 |
+£2,500 |
|
Average |
£552,000 |
£11,419 |
£17,827 |
+£6,408 |
John Fraser-Tucker, Head of Mortgages at Mojo Mortgages, states: “These changes represent a significant shift for first-time buyers in London. With the nil-rate threshold dropping to £300,000 and maximum relief reduced to £500,000, many buyers may find themselves facing unexpected costs. It’s key for prospective homeowners to act quickly and consider properties just below these thresholds to minimise their Stamp Duty burden.”
How will Stamp Duty change for first-time buyers in England from 1st April 2025?
From 1st April, significant changes to Stamp Duty Land Tax (SDLT) in England are set to take effect, affecting homebuyers across the board.
One of the most notable adjustments will affect first-time buyers. The 0% threshold will decrease from £425,000 to £300,000. This means that if you’re purchasing your first home for £300,000 or less, you’ll still benefit from the tax exemption, but anything above this threshold will incur costs:
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Properties priced between £300,001 and £500,000 will be taxed at 5%.
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The maximum property value eligible for first-time buyer relief will also drop from £625,000 to £500,000, limiting options for those looking at higher-priced homes.