Aldermore urges government not to end stamp duty exemption threshold for first time buyers in Autumn Budget

Ahead of the Autumn Budget, Aldermore are calling for the Government not to end the stamp duty exemption threshold for first time buyers (FTBs), currently set at £425,000
Aldermore’s First Time Buyer Index¹, a survey of 2,000 prospective FTBs, has revealed that over half (53%) of prospective FTBs want the Government to raise the stamp duty exemption threshold above £425,000
Over one in 10 (13%) recent FTBs² say the cost of stamp duty was the hardest part of the homebuying process
Nearly three in four (73%) FTBs feel the Government needs to introduce new incentives and legislation to help them onto the property ladder

Jon Cooper, director of mortgages at Aldermore, said:

“We’ve seen homeownership become more difficult to attain, yet it remains a big life goal for over three in four (77%) prospective buyers. There’s been much speculation that the stamp duty exemption threshold will fall back to £300,000 from £425,000 in the Autumn Budget next week. We’re calling for the Government to keep the current stamp duty exemption threshold, with concerns more individuals will be priced out of home ownership if it falls back.

“The average cost of a house in the UK is £371,958³ and in London this rises even further, so if the exemption falls back to £300,000, a reduction in stamp duty exemption will add further pressures to what is already a costly homeownership journey. Over one in 10 (13%) recent FTBs said the cost of stamp duty was the hardest part of the homebuying process, and we can expect to see this sentiment significantly increase if the threshold is reduced. FTBs are desperate for more support to help them get on the property ladder, and while there is no silver bullet, keeping the threshold at the current £425,000 will make a considerable difference to many.”

**Ends**

Notes to editors

¹Research conducted, on behalf of Aldermore bank, by Opinium between 17^th – 28^th June 2024, among 2,000 Prospective First Time Buyers.

^{2 1}Research conducted, on behalf of Aldermore bank, by Opinium between 17^th – 28^th June 2024, among 500 Actual First Time Buyers

³ Rightmove House Price index – October 2024

Further asks for the Autumn Budget include:

Introduce more flexible regulations for specialist lenders, facilitating more agile lending and differentiating between standards Tier 1 banks are held to
Ensure that any regulatory reform is conducted with consideration to creating the right environment to attract more inward investment
Reform the pay structure for mid-sized lenders with regard to the diversification and growth of the industry
SME Access to Finance: Greater focus on how lenders treat SME customers, particularly the expectation that SMEs are treated in a similar way to regulated customers.
SME Supporting Factor: Retain the SME supporting factor in its current form.
Digital Financial Passports: Create a system of “digital financial passports” to enable better electronic identification and verification.

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