MANY homebuyers in York look set to pay thousands more in Stamp Duty due to new thresholds introduced at the start of the month.
The Skipton Group has revealed that the proportion of local authority areas in England where the average first-time buyer home falls in scope of stamp duty has almost quadrupled overnight from 8.4% to 32.0% on April 1.
This includes York, where the average first-time house buyer price is the only area within the Yorkshire and the Humber to rise above the stamp duty relief threshold of £300,000 from Q2 2025.
Earlier this month, the government reduced the stamp duty relief threshold for first time buyers from £425,000 to £300,000. For other homebuyers, the threshold was halved from £250,000 to £125,000.
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The Group, which operates companies including Skipton Building Society and the Connells estate agency chain, says this will put further pressure on people wanting to take their first step on the property ladder.
Demand greatly outweighs supply in York, they say, which is exacerbated by the second home and buy to let market meaning affordability is now beyond the reach of the average first-time buyer.
According to The Office of National Statistics, the average house price in York was £303,000 in December 2024, compared to Yorkshire and the Humber, where the average house price in December 2024 was £204,000.
The changes will add £6,250 to the cost of buying a first home worth £425,000. And this compounds Skipton’s findings that almost 90% of potential first-time buyers in Great Britain today cannot afford to get onto the property ladder based on their own financial situation.
This week, Skipton Group brought together senior stakeholders from across the financial services and housing ecosystem at a Parliamentary reception at the House of Commons, focused on solving the UK’s pressing home affordability challenge for both renters and home buyers.
Jen Lloyd, Head of Mortgages at Skipton Building Society said: “Our Home Affordability Index research shows that the country has a chronic lack of home affordability and this week’s changes are undoubtedly going to make things much tougher.
“Significantly more first-time buyers will have to find additional funds, and we recognise that behind the scenes, this could cause real financial struggles. The stamp duty reforms will further hurt first-time buyers, particularly in areas such as York, where it is already harder than other parts of the region to get onto the property ladder.
‘’The Chancellor had an opportunity to help first time buyers in last week’s Spring Statement by maintaining the current nil rate stamp duty threshold of £425,000. We’re disappointed that these reforms have come in when people need help more than ever to get their first home."
