The Autumn Budget has been and gone without any changes to stamp duty rules. Many first time buyers were hoping for greater stamp duty relief to make buying their first home more affordable. While this hasn’t happened, new data from Lloyds suggests that now is the most affordable time to be a first time buyer in a decade.
After years of challenging conditions, first-time buyers are finally catching a break, despite no stamp duty changes in this year’s Autumn Budget. A combination of easing mortgage rates, stronger wages and gentler house price growth has pushed affordability to a more favourable point – a shift that’s giving many would-be homeowners a realistic chance to take their first step onto the property ladder.
Do first time buyers pay stamp duty?
Whether first time buyers pay stamp duty or not depends on the price of the home they’re buying.
The rules were changed in April 2025. Now, first time buyers pay no stamp duty on their purchase if the property costs £300,000 or less. They then pay 5% on the portion of the property’s value that falls between £300,001 and £500,000.
If the property costs more than £500,000, first-time buyers are not eligible for relief and must pay stamp duty at the standard rate.
Affordability at its strongest level in 10 years
Even if you do need to pay stamp duty as a first time buyer, things are still looking up. For example, the Lloyds data suggests that a typical first-time buyer home now costs just under six times the average first-time buyer income at 5.9x. That’s a meaningful improvement from last year, which sat at 6.2x, and the most favourable ratio since 2015.
For many households, rising wages have helped close the gap more quickly than property prices have increased. The typical first property is now valued at £237,518 (a rise of 2.4% over the last year), while average incomes have risen by 6.2% and now sit at £40,021.
At the same time, monthly mortgage costs have dipped to their lowest share of income in nearly three years. With average repayments now sitting at £1087 per month, around £259 less than the equivalent cost of renting, the financial case for buying is stronger than it has been for some time.
What’s driving the shift
Three factors are working in first time buyers’ favour:
- Mortgage rates have softened, reducing the burden of monthly repayments.
- Incomes have risen faster than house prices, helping buyers stretch their budgets further.
- House price growth has stabilised, reducing the pace at which affordability erodes.
Together, these trends mean that many first-time buyers who felt locked out of the market even a year ago may now be in a far stronger position, despite the fact no stamp duty changes for first time buyers were announced at the Autumn Budget.
Why timing matters
If you’re considering buying your first home, now could be a great time to act. Periods of improved affordability don’t tend to last long. Markets react, demand increases and conditions can tighten quickly, particularly in regions where competition is already intense.
For buyers ready to make the move, acting promptly can make a significant difference. Securing a mortgage offer, finding the right property and getting your conveyancing process underway as early as possible can help you take advantage of today’s conditions before the landscape shifts again.
How a conveyancer can help
Buying your first home is an exciting milestone, but it’s also one of the most complex transactions you’ll ever undertake. Having the right legal advice by your side is crucial for your peace of mind.
Your conveyancing solicitor can help you:
- Navigate the legal process smoothly, keeping your purchase on track. At Setfords, our average completion times are 4 weeks faster than the industry average.
- Spot issues early, reducing the risk of unexpected delays or costs.
- Coordinate with lenders and agents efficiently, ensuring key milestones are met.
- Protect your interests, from contract terms to completion.
Thinking of buying your first home?
If you’re considering making the leap, now may be one of the most favourable moments we’ve seen in years. Our conveyancing team is here to guide you through every step, from initial offer to handing you the keys.
With over 14,000 Trustpilot reviews from happy clients and an average 4.9 star rating, rest assured you’re in safe hands. Plus, we have hundreds of qualified lawyers located nationwide, so it’s easy to match you up with a conveyancer to suit your needs.
Get in touch today to discuss your plans and take advantage of this rare window of opportunity.
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