Published 28th November 2025.
The Autumn Budget on 26 November 2025 confirmed no changes to Stamp Duty Land Tax.
The rules set on 1 April 2025 still apply: first-time buyers pay nothing up to £300,000 and 5% on the portion from £300,001 to £500,000, with no relief above £500,000. For a full explainer and worked examples, see Do first-time buyers pay Stamp Duty?
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. Setfords is among the fastest-completing leading UK law firms.
- 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.
What you can expect with Setfords
Ultimate flexibility: Our lawyers can tailor their schedules to meet your needs.
Nationwide coverage: with hundreds of consultant lawyers across the UK, we’ll connect you with the right expert.
Dedicated specialist legal partner: work directly with your chosen lawyer from start to finish.
Highly experienced: Setfords lawyers have an average of 20 years’ experience, so you can be assured you’re in safe hands.
Capacity-based allocation: our lawyers never take on more work than they can handle, so you get the focus and attention you deserve.
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 16,000 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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