The average London buyer will have to pay £17,827 towards stamp duty once the higher bands come into force at the end of the month, analysis from Mojo Mortgages has revealed.
This represents an increase of £6,408 from current levels of £11,419.
Some 15 boroughs will see the maximum increase of £11,250, including popular areas like Barnet, Brent, Ealing, and Hackney.
John Fraser-Tucker, head of mortgages at Mojo Mortgages, said: “These changes represent a significant shift for first-time buyers in London.
“With the nil-rate threshold dropping to £300,000 and maximum relief reduced to £500,000, many buyers may find themselves facing unexpected costs.
“It’s key for prospective homeowners to act quickly and consider properties just below these thresholds to minimise their Stamp Duty burden.”
From 1 April the 0% first-time buyer stamp duty threshold will decrease from £425,000 to £300,000. This means that if you’re purchasing your first home for £300,000 or less, you’ll still benefit from the tax exemption, but anything above this threshold will incur costs.
Properties priced between £300,001 and £500,000 will be taxed at 5%, while the maximum property value eligible for first-time buyer relief will also drop from £625,000 to £500,000.
First-time buyers in Havering, Bexley, and Croydon, who currently pay no stamp duty, will face new charges of £11,150, £10,300, and £10,150, respectively.
Barking and Dagenham, despite having the lowest average house price at £344,000, will still see stamp duty introduced at £7,200 for first-time buyers.
The most expensive borough, Kensington and Chelsea, with an average price of £1,070,000, will see a relatively small increase of £2,500, from £48,250 to £50,750.
Westminster, the second most expensive borough, will have the highest stamp duty for first-time buyers at £33,300 after the changes.
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