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There’s nothing quite like the feeling of putting the key in the door and stepping into your very first home. People often try to describe it, but the truth is, it’s an experience that must be felt to be fully understood.
But this journey doesn’t start with the key – it begins much earlier, the moment you decide to buy your first property. From saving for a deposit to navigating the complexities of mortgages, solicitors, and property searches, the process can feel daunting.
Early, careful planning is the foundation of a successful home purchase. Start by understanding the financial side:
Once you have clarity, it’s time to decide what type of property you’re looking for and where you’d like to live. With these details sorted, you can search with confidence.
When you find the one, you’ll negotiate the price, apply for your mortgage, and instruct a solicitor. Your mortgage provider, solicitor, and estate agent will then work together to guide you through to the exchange of contracts – the legally binding point of the purchase.
At this stage, you’ll pay a deposit, typically 5-10% of the purchase price, with the balance paid on completion. And then comes the magical moment: turning the key in the lock of a property that’s truly yours.
Currently, first-time buyers benefit from a temporary stamp duty relief introduced in 2022, exempting them from stamp duty on properties up to £425,000. For properties priced between £425,001 and £625,000, a 5% stamp duty applies only to the portion above £425,000.
This relief is set to end on April 1, 2025, when the exemption threshold will revert to £300,000. After this date, first-time buyers purchasing properties between £300,001 and £500,000 will pay 5% stamp duty on the portion exceeding £300,000, potentially increasing their upfront costs significantly.
Now is an excellent time for first-time buyers to take advantage of this saving before the relief expires.
Here is how the savings compare:
Property Purchase Price |
Stamp Duty Before 1 April 2025 |
Stamp Duty After 1 April 2025 |
Savings |
|---|---|---|---|
| £250,000 | £0 | £0 | £0 |
| £300,000 | £0 | £0 | £0 |
| £350,000 | £0 | £2,500 | £2,500 |
| £400,000 | £0 | £5,000 | £5,000 |
| £450,000 | £1,250 | £7,500 | £6,250 |
| £500,000 | £3,750 | £10,000 | £6,250 |
In areas like Surrey, where average property prices for first-time buyers often exceed £300,000, this relief can make a big difference. For example, recent ONS data shows that first-time buyers in Elmbridge paid an average of £478,000 in October 2024, comfortably above the returning £300,000 threshold.
Andrew Dewar, Joint Senior Partner at Curchods, explains the impact:
“With savings available up to £625,000, we expect an unseasonal wave of demand for properties under £500,000 in the coming months. First-time buyers hoping to secure this saving should aim to find their dream home and agree on a sale as soon as possible, creating an active and exciting property market.”
Buying your first home can feel overwhelming, but you’re never alone. Curchods Estate Agents are here to guide you every step of the way – from understanding finances to navigating the legal process and beyond.
If moving by April 2025 could be achievable or indeed desirable for you, Curchods are experts in unravelling the complexities at every point of the house buying and moving process. We are dedicated to making it easier for people to be confident to make the right decisions.
We currently have many properties suitable for first-time buyers, including over 50 brand-new homes in Surrey across 11 developments, all eligible for the stamp duty saving if completed before April 2025.
It is also worth noting that if you are looking to go on and buy your next property, there is a saving of £2,500 for all buyers buying their primary residence before April 2025 on purchases in excess of £250,000. So, you might secure yourself a higher price on your sale and make a £2,500 saving on your onward purchase.
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