Beat the stamp duty rise with these new homes for first-time buyers
With stamp duty set to increase for first-time buyers, consider a brand-new home as an option to get your first step on the property ladder
If buying your first home is top of your priority list this year, you may want to speed up your search. Upcoming changes to stamp duty coming into effect from 1 April 2025 mean tax bills are set to increase, with buyers looking to complete their purchase sooner rather than later.
This will be particularly acute for those looking to get started on the housing ladder. For first-time buyers the nil rate threshold will reduce from £425,000 to £300,000, resulting in up to £6,250 in additional stamp duty payable. Furthermore, the maximum purchase price for which First-Time Buyers Relief (a reduced stamp duty rate) can be claimed is currently £625,000, and will return to the previous level of £500,000.
First-time buyers can avoid paying stamp duty tax on properties up to £425,000 by purchasing before these changes come into effect. In addition to getting the legal aspect of your house purchase sorted quickly, if requiring a mortgage your decision here can also make a difference in meeting the deadline. “If time is pressing, our experience enables us to recommend a lender that we know will complete the process quickly,” says Nathan Bakhbakhi, Partner at Knight Frank Finance. “There might be a slight difference in rates, but it can help you complete in time and ensure the overall cost is lower.”
With timelines tight, those hoping for a swift move may want to consider a brand-new home. One of the biggest benefits is that there is no seller chain, meaning it can be a more straightforward process with less potential for unexpected delays. For new homes that are ready to move into, the process from an accepted offer to completion could take as little as 6-8 weeks. There are other advantages, too, with such properties tending to be more energy efficient. Not only does this mean smaller energy bills, but those buying or with homes that have an EPC (Energy Performance Certificate) rating of A or B are eligible for green mortgage products that offer preferential terms.
“Green mortgage products are becoming increasingly popular,” explains Bakhbakhi. “Not only may the rates be slightly lower, but they can also come with large amounts of cashback. So as well as the environmental benefits, there are some big financial advantages to buying a property with a good EPC rating.”
Here we take a look at a selection of new homes across the UK ideal for first-time buyers.
The Clay Yard, West Hampstead, London, NW6
Located in the heart of the sought-after West Hampstead village, this development of 106 apartments, comprising 1, 2 and 3 bedrooms, offers a tranquil retreat within easy reach of the centre of the capital. Here the focus is placed on inviting the serenity of its surroundings in, with nature-inspired design, a sustainable focus and thoughtfully crafted outside space. Residents also have access to an equipped gymnasium and remote working lounge with onsite concierge to help relax and unwind.
This contemporary collection of 1- and 2-bedroom apartments and 3-bedroom townhouses is ideal for both young professionals and families alike, ready to move into and call home. Alongside boasting a range of private and communal outdoor spaces, it is enviably located just moments away from the park and close to Chiswick’s array of independent boutiques and dining.
Artisi, King Street, Hammersmith, London, W6
This stylish collection of 1- and 2-bedroom apartments forms part of the Hammersmith Town Hall masterplan, Civic Campus, set around the transformation of the landmark Grade II-listed building. This vibrant new community celebrates the rich culture of the area, bringing together new performance venues, gallery spaces, shops and restaurants, with Artisi placing you at the heart of the action.
8 Harbord Square, Canary Wharf, London, E14
This development offers flexible living at its finest, placing you within easy walking distance of Canary Wharf’s array of dining, shops and beautiful green spaces. It pays tribute to London’s dockside heritage while bringing a contemporary loft-style feel to the interiors, with the apartments designed with minimal internal walls to allow you to truly personalise the space to suit your lifestyle.
Hanwell Square, 75-117 Boston Road, London, W7
This west London neighbourhood combines a village-like feel with excellent connectivity to the rest of the capital, located just a short walk away from the Elizabeth Line. The collection of contemporary homes has been conceived with convenience in mind, with high-specification finishes and access to on-site amenities including landscaped courtyards, a gym and concierge.
For further information read our New Homes Buyer Guide, or contact Knight Frank Finance for advice on mortgages and other financial requirements.
