Latest figures show that 341,068 first-time buyers stepped onto the property ladder in England and Wales last year, up 19% on 2023.
First-time buyers made up over half (54%) of all home purchases made with a mortgage last year, the biggest majority on record, according to research from Halifax.
Several key factors contributed to this surge in first-time purchases. Lower mortgage rates, more confidence in the market, and an increase in the number of joint purchases are all believed to have played a part in the boom.
The rush to complete transactions before the stamp duty land tax (SDLT) holiday ended on 1 April 2025 also convinced many people it was the right time to buy.
According to Halifax’s press release (published on 14 February 2025), the average first-time buyer in 2024 was 33 years of age, the oldest in two decades.
Last year, first-time buyers across England and Wales put down an average deposit of £61,090 and typically paid £311,034 for their first home.
Many buying their first home are doing so ‘coupled up’, with almost two-thirds (62%) of mortgage completions in 2024 in two or more names, revealed the bank.
But how do things look now? Is 2025 a good year for first-time buyers in Cheltenham and Gloucester? What are property prices like across the region?
In this blog, our experienced Residential Conveyancers consider some of the main factors affecting first-time buyers in Gloucestershire in 2025.
- Changes to SDLT.
Changes to stamp duty thresholds came into effect from 1 April 2025, meaning more first-time buyers will have to pay stamp duty on property purchases going forward.
From 1 April 2025, the 0% stamp duty threshold was reduced from £425,000 to £300,000 for first-time buyers.
This means that first-time buyers will go from paying nothing in SDLT on a home worth £425,000 to now paying £6,250 in stamp duty.
Standard SDLT charges will also apply to properties worth more than £500,000, replacing a £625,000 home-value limit.
With the average house price in Cheltenham standing at £331,000 in January 2025, according to provisional data from the Office for National Statistics (ONS), it is likely that the changes to SDLT will affect some first-time buyers in the region.
However, as the average price paid by first-time buyers for properties in Cheltenham in January 2025 was £278,000, many purchases should continue to fall below the SDLT threshold.
First-time buyers in Gloucester should also be largely immune to the rise, with average house prices currently around £239,000 and first-time buyers paying an average of £210,000 for their first homes.
- Increase in housing stock.
The good news for first-time buyers in Cheltenham and Gloucester is an anticipated increase in housing stock over the next few years.
The government announced in December that it is committed to building 1.5 million new homes over the next five years, with many new projects planned for the region.
To meet government targets, Cheltenham needs 824 new homes a year, the Cotswolds needs 1,036 new homes each year, the Forest of Dean needs 600 new homes annually, Gloucester needs 685 new homes every year, and Stroud needs 820 new homes per annum.
Moreover, the Cheltenham, Gloucester and Tewksbury strategic local plan sets a target for homebuilding across the three districts over the next 20 years.
During this time, 13,620 homes are anticipated being built in Gloucester, 11,140 in the borough of Tewkesbury and 10,940 new properties are expected in Cheltenham.
With a focus on affordability, increased housing stock will help moderate prices, which is likely to work in favour of first-time buyers.
- Leasehold reform.
First-time buyers will also receive a boost from the Leasehold and Freehold Reform Act 2024, which received royal assent at the end of May 2024.
This Act will introduce a series of changes to make leasehold properties more appealing.
Reforms include greater transparency over service charges, new ‘peppercorn’ ground rents, and easier and cheaper lease extensions.
The Act will be implemented in phases, with the key provisions expected to come into force over the next two years.
For more information about buying a property as a first-time buyer, see our First-Time Buyers Guide by clicking here.
Residential Conveyancers Gloucester and Cheltenham
At Langley Wellington, our experienced residential conveyancing solicitors have extensive experience helping first-time buyers take their first steps on the property ladder.
We will work closely with you, ensuring you are aware of what needs to be done at every stage of the process, and overseeing the transaction to ensure it runs smoothly.
Langley Wellington has a dedicated department that specialises in buying and selling residential property called Cotswold Conveyancing Centre.
From here, our experienced conveyancers provide you with market-leading services and adopt a pragmatic and straightforward approach that puts you at the heart of your property purchase.
By instructing our knowledgeable and professional team, you can be confident that we will do all we can to deliver a truly efficient, cost-effective, personal conveyancing service.
To speak to us today, please call 01452 545 678, email lawyers@langleywellington.co.uk or fill in this contact form.
This blog is not intended to be taken as advice or acted upon. If you are seeking legal advice, please get in touch with our team of solicitors.
