Taking your first steps on the property ladder is not easy.
The housing market has been particularly challenging for first-time buyers over the past few years, as rising prices, stagnant wages and high mortgage rates have conspired against many of those keen to buy their first home.
So, how do things look now? Are property prices likely to fall in Cambridgeshire over the next 12 months? Is now a good time to buy a house?
In this blog, our experienced Residential Conveyancing solicitors round up some key considerations for first-time buyers in 2025.
The biggest challenge for first-time buyers across England and Wales in 2025 is the change to stamp duty rates that come into effect from 1 April.
Currently, first-time buyers pay no stamp duty when buying a home worth £425,000. From 1 April 2025, this threshold will drop to £300,000, and a rate of 5% SDLT will apply to property purchases up to £500,000.
This means that first-time buyers will go from paying nothing in SDLT on a home worth £425,000 to paying £6,250 in stamp duty after 1 April 2025.
With average house prices in Cambridgeshire standing at £366,020 in 2024, changes in SDLT rates are likely to affect some first-time buyers in the region.
However, property prices in March and Wisbech are lower than the county average. According to Rightmove, house prices in March were, on average, £243,179 over the last year, while the average property price in Wisbech stood at £207,688 in 2024.
A report from Zoopla published in the Cambridge News at the end of last year named Wisbech in Cambridgeshire as the most affordable town to buy in southern England, suggesting there are still deals to be done.
- Leasehold Reform.
The Leasehold and Freehold Reform Act 2024 is expected to come into force in spring 2025 and will introduce a series of changes that will make buying a leasehold property more appealing to first-time buyers.
Greater transparency over service charges, new ‘peppercorn’ ground rents, and easier and cheaper lease extensions are all set to revolutionise the leasehold system and make leasehold properties a better option.
Read more about the Leasehold Reform Act in our previous blog by clicking here.
- More housing stock.
The government announced in December that it is committed to building 1.5 million new homes over the next five years.
Increased housing stock is likely to help moderate prices, and with the government pledging that its focus will be on affordability, this is likely to work in favour of first-time buyers.
New build properties have long since held considerable appeal for those looking to take their first steps on the property ladder.
Buyers can often put their own stamp on the property, and new builds are usually more energy efficient and often come with warranties.
Several government-backed schemes also exist for first-time buyers that further entrench their appeal within this demographic. These include Lifetime ISAs, shared ownership and the First Homes scheme.
However, conveyancing on new build properties comes with additional challenges and there is more potential for things to go wrong.
For more information about buying a property as a first-time buyer and to download our free guide click here.
Conveyancing Solicitors Wisbech
Bowsers Solicitors’ specialist team of residential property lawyers have been assisting first-time buyers across Cambridgeshire for many years.
We understand the daunting prospect of taking your first step onto the property ladder and will do all we can to ensure your transaction runs smoothly, keeping you informed of every step.
If you are a first-time buyer seeking to instruct a professional and reliable solicitor, please get in touch with Bowsers Solicitors today. You can call 01945 583194 (Wisbech) or 01354 652606 (March). Alternatively, please email reception@bowsers.co.uk or fill in this contact form.
CQS Accredited Lawyers
Bowsers Solicitors’ residential conveyancing department is proud to be accredited by The Law Society’s Conveyancing Quality Scheme (CQS). CQS is a recognised quality standard for residential conveyancing practices in the UK. Find out more here.
