Removal of stamp duty could improve FTB access to new builds – Rightmove
The number of new-build developments coming to the market is at its lowest level since 2017, limiting stock for first-time buyers.
The average mortgage rate currently sits at 4.92%, up from 3.53% four years ago. For buyers, developers and estate agents alike, this translated to demand constraints.
Rightmove urged the government to support developers in its Autumn Budget, especially if it wants its target of building one-and-a-half million homes to be realised.
Better support of first-time buyers
Rightmove suggested the removal of stamp duty for first-time buyers across both new-build and resale properties to improve affordability for first-time buyers.
The government’s First Homes scheme supports first-time buyers to get on the housing ladder with the purchase of a new build home.
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However, Rightmove proposed carefully considered and targeted demand-side support measures for first-time buyers were needed.
Steve Mariner, group sales and marketing director at Barratt Redrow, said: “Government has made good progress reforming the planning system, helping unlock more land for development. However, increasing regulatory costs are holding new homes back, while low customer confidence, higher borrowing costs and wider economic uncertainty are all making it harder for first-time buyers to get onto the housing ladder.
“A new scheme to support first-time buyers, with developers contributing alongside government, would help people achieve their dream of homeownership, get the market moving and see more homes built and more economic growth. For the first time in decades there is no government support to help people in England buy their first home, right when it’s needed most.”
The government also recently launched its consultation on its FTB ISA to enhance state support for first-time buyers. The proposed property value limit was £450,000.
The average price of a new build is £393,000, according to the April 2026 UK house price index.
Danni Hewson, head of financial analysis at AJ Bell, said: “Consulting on a new First Time Buyer ISA could be a step in the right direction, but that will take time, and key details about the new product are yet to be announced. Small changes to the current Lifetime ISA, including lifting the current £450,000 limit, could have offered a quick win.”
Supporting this sentiment, Alex Slater, Rightmove’s director of new homes, commented: “First-time buyers underpin the whole housing market, but affordability and getting that first foot on the ladder is becoming more difficult. We need a set of reforms that go further, faster and work together, from stamp duty changes to more investment in affordable housing, to give this group a better chance of getting onto the ladder and keeping the market moving.”
Nicholas Mendes, mortgage technical manager at John Charcol, suggested that there is still hope for first-time buyers.
He said: “New builds account for a relatively small share of overall transactions, and with total stock for sale up 85% on four years ago, buyers of existing homes currently have plenty of choice, which is keeping price growth in check across most of the market.”
He added: “The market can absorb a temporary dip, but a sustained fall in new development risks locking another generation into renting for longer.
“For anyone buying now, the practical message is that high stock levels mean genuine room to negotiate on existing homes, so first-time buyers shouldn’t assume they’re priced out before exploring what’s available.”
