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First-Time Buyers Shift to Homes Under £300k as Stamp Duty Rules Bite

Mortgage News

First-Time Buyers Shift to Homes Under £300k as Stamp Duty Rules Bite

New market data suggests first-time buyers are increasingly targeting properties priced below £300,000 after the stamp duty threshold for first-time buyer relief dropped. Here’s what it could mean if you’re house hunting — and how to plan your budget.

This article is for general information only and does not constitute financial advice. Information is correct at the time of writing and may change as market conditions and lender policies evolve. A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

What’s changed — and why buyers are reacting

Recent market reporting suggests first-time buyers have been adjusting their search behavior as stamp duty rules bite more sharply at certain price points. In particular, more buyers appear to be focusing on properties priced below £300,000, where the tax impact can feel less painful.

This doesn’t mean homes above £300k won’t sell — but it does mean competition can intensify for good-quality homes that sit just under the line.

Next steps

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What it could mean if you’re buying soon

  • More competition under £300k: If lots of first-time buyers are clustering around the same budget, desirable homes can attract more viewings and tighter timelines.
  • Price ‘bunching’: In some areas, properties may be marketed just under key thresholds (e.g., £299,950) to capture buyer demand.
  • Budget planning matters more: Your monthly payment is still the big cost — but stamp duty can change how much cash you need upfront.

If you’re close to the boundary, it’s worth looking at the total cost to complete (deposit + fees + stamp duty + moving costs) rather than just the headline purchase price.

Practical next steps

If you’re buying in Northern Ireland, the best approach is usually to do three things early:

  1. Sense-check affordability with a realistic rate and term (not just the best-case headline rate).
  2. Decide your deposit strategy — sometimes a slightly larger deposit improves pricing enough to matter.
  3. Get a Decision in Principle so you’re ready to move quickly when the right home appears.

If you’d like, we can help you map out the numbers and compare options based on your deposit and target price range.