First-time buyers could see huge tax hit under changes rumored to be included in the Autumn budget.

It has been rumoured that Chancellor of the Exchequer Rachel Reeves will rule out any changes to stamp duty land tax in the Budget.

Stamp duty land tax currently applies to homes costing over £250,000, but in March 2025, it will drop back to £125,000—the level it was at before temporary changes were made in the 2022 mini-Budget.

There had been speculation that Reeves would freeze the bracket at £250,000, but it’s widely believed the Labour Chancellor has ruled this out.

As a result, Rightmove has estimated the average first-time buyer could be hit with a stamp duty bill of £3,538, compared to nothing in the current scheme.

Property expert Tim Bannister said: “The rumours that ‘nil rate’ and first-time buyer stamp duty thresholds will indeed be reverting to previous levels… will no doubt be seen as an unwelcome additional cost by many buyers looking to make their move in 2025.”

Overall, 61 per cent of first-time buyers are currently exempt from stamp duty. That number could plummet to 40 per cent if the exemption threshold falls, according to the property portal’s numbers.

What first-time buyers want to see from the Autumn Budget

The property site’s recent survey identified what first-time buyers and home owners wanted to see from the government on Wednesday.

Out of the 34,000 respondents, 44 per cent of homeowners want to see the home-buying process simplified, with 46 per cent voting for a stamp duty reform.

Bannister noted that the seven-month home-buying process is a source of “nail-biting stress,” so streamlining it should be “supported and encouraged.”

Meanwhile, 60 per cent of renters want to see more support for first-time buyers.

Rightmove’s mortgage expert, Matt Smith, said: “There are several hurdles for first-time buyers to clear, made more difficult with higher mortgage rates and payments outpacing wage growth”.

He said that changes to affordability could provide first-time buyers with a sense of relief.

“We think there is the opportunity for the government to help unlock greater long-term affordability”, he said.

Landlords set for cost hit

Landlords are also wary of green updates and pending Energy Performance Certificate (EPC) regulations, with half of landlords concerned that failing to meet these could prompt costly charges.

Rightmove’s survey showed that 2.9m properties have to improve to reach an EPC C rating in the rental market by 2030.

This would cost an estimated £23.4bn, about £9,074 per property for the owner.

Rightmove’s head of lettings said: “Landlords, like all investors, value certainty about the cost of their investments… clarity must come very quickly on what is likely to be expected of landlords and any funding that may be available to them.”

Yet, property market activity remains strong ahead of the Budget, with agreed sales hiking by 29 per cent year on year, while the number of estate agent inquiries also rose 17 per cent.

The number of available homes for sale also upped by 12 per cent.