The government is set to take more tax from first-time buyers than from those moving house. A study by Compare My Move reveals that, while the average homebuyer across London boroughs will see a £2,500 increase in stamp duty tax, first-time buyers could face hikes of up to £11,250.

Using Compare My Move’s Stamp Duty Change Calculator, the report compares how much stamp duty land tax (SDLT) London homebuyers will need to pay before and after April 1st, broken down by borough.

What boroughs are hit the hardest?
Below is a breakdown of the London boroughs that will be paying the largest increases in first-time buyer SDLT, based on the average house price in each area.

London Boroughs
Average House Price
SDLT Before April
SDLT After April
Increase (%)
Change (£)
Bexley
£549,901
£6,245
£17,495
180%
£11,250
Bromley
£564,417
£6,970
£18,220
161%
£11,250
Enfield
£542,151
£5,857
£17,107
192%
£11,250
Greenwich
£598,726
£8,686
£19,936
130%
£11,250
Harrow
£561,199
£6,809
£18,059
165%
£11,250
Lewisham
£525,294
£5,014
£16,264
224%
£11,250
Redbridge
£575,600
£7,530
£18,780
149%
£11,250
Tower Hamlets
£545,956
£6,047
£17,297
186%
£11,250
Waltham Forest
£559,577
£6,728
£17,978
167%
£11,250
If you’re already a homeowner and moving to a new house in London, your Stamp Duty Land Tax (SDLT) will increase by £2,500 after April 1st, regardless of which borough you move to. This figure remains consistent across all 33 boroughs.

However, for first-time buyers, the increase varies significantly. First-time buyers in 16 out of 33 London boroughs will be paying more than the standard £2,500 change, with the 9 boroughs above paying £11,250 more than they would if they bought a house before April 1st.

Notably, the impact of this tax change isn’t evenly distributed. Boroughs with lower property prices will see the steepest increases, while those with higher property prices will experience smaller tax hikes.

Below is a list of the London boroughs which will be paying the smallest change in SDLT, based on their average property price.

London Boroughs
Average House Price
SDLT Before April
SDLT After April
Increase (%)
Change (£)
Kensington and Chelsea
£1,907,037
£140,094
£142,594
1.8%
£2,500
Westminster
£1,578,074
£100,618
£103,118
2.5%
£2,500
Camden
£1,047,029
£45,952
£48,452
5.4%
£2,500
Hammersmith and Fulham
£1,012,223
£42,472
£44,972
5.9%
£2,500
Richmond upon Thames
£903,821
£32,691
£35,191
7.6%
£2,500
City of London
£856,877
£30,343
£32,843
8.2%
£2,500
Wandsworth
£834,605
£29,230
£31,730
8.6%
£2,500
Islington
£834,474
£29,223
£31,723
8.6%
£2,500
Ealing
£834,088
£29,204
£31,704
8.6%
£2,500
Barnet
£771,528
£26,076
£28,576
9.6%
£2,500
Merton
£727,111
£23,855
£26,355
10.5%
£2,500
Kingston upon Thames
£712,231
£23,111
£25,611
10.8%
£2,500
Haringey
£702,007
£22,600
£25,100
11.1%
£2,500
Hackney
£694,212
£22,210
£24,710
11.3%
£2,500
Brent
£686,909
£21,845
£24,345
11.4%
£2,500
Southwark
£659,098
£20,454
£22,954
12.2%
£2,500
Lambeth
£643,167
£19,658
£22,158
12.7%
£2,500
The boroughs facing the standard £2,500 increase in SDLT have an average house price of £906,000. In contrast, the boroughs experiencing the £11,250 SDLT increases have an average house price of £558,000—£348,000 lower than the areas which are paying the standard increase.

What does this mean for first-time buyers in London?
London was the only UK region between 2014 and 2024 to see a decline in first-time buyers (8%) according to Halifax. We asked managing director and founder of Compare My Move, Dave Sayce what this tax hike will mean for first-time buyers in London, and if we’re going to see a further decline in London’s first-time buyers.

“With property prices growing it’s getting harder and harder to get onto the property ladder in London. I’m afraid this change in stamp duty that adds so much to the upfront costs for a first-time buyer in London will ensure that buying in London becomes even harder.

“This trend will see more and more young people leaving London in order to buy a property, simply because they can’t afford a property in London. Because the average house price is higher in London than anywhere else in the UK, but the tax brackets remain UK-wide, it also means that the more affordable boroughs are getting hit with SDLT 3 or 4 times more than they would have paid, while wealthier boroughs are only seeing increases of a 1%-13%. We are seeing a decrease in the number of affordable areas to buy property in London, and with this, we will see a decrease in the number of first-time buyers.”