There’s been a 55% drop in first-time buyer offers in this quarter compared to the same time last year due to the cliff edge nature of the the stamp duty holiday, data from estate agency software provider Alto shows.
On April 1st the government cut stamp duty relief for first-time buyers, reducing the tax-free threshold from £425,000 to £300,000. The change means many now face thousands more in upfront costs when trying to get on the ladder.
First-time buyer registrations surged by 70% quarter-on-quarter in early 2024, likely in order to beat the deadline.
For many agents, this sharp fall in first-time buyer activity is hitting revenue, with fewer deals reaching completion and pipelines drying up.
Riccardo Iannucci-Dawson, chief executive of Alto, said: “This data should be a wake-up call for policymakers.
“Agents are already seeing the fallout with first-time buyers vanishing from the market, and deals falling through.
“Alto’s market dashboards help agents spot shifts like these early — giving them the insight they need to adjust strategy and better serve clients in changing conditions.
“However, if the goal is to build a fairer, more accessible housing market, we urgently need more targeted support for first time buyers. Agents can’t shoulder this alone – the system needs to meet them halfway.”