There are only a handful of properties for sale in London that will still be exempt from stamp duty from next week, research has found.
From 1 April, buyers moving home will pay stamp duty on anything over £125,000, making London’s already expensive housing market even tougher to navigate.
Analysis by OneDome carried out on 12 March found there were just 11 properties for sale on Rightmove and Zoopla that were under the threshold.
Most of the properties, which remain on sale this week, are compact studios, but two are small one-bedroom flats, according to OneDome.
The properties are located in areas like Hounslow, Croydon, Lewisham, Uxbridge, Brixton, and Harrow.
OneDome’s analysis excluded new-builds, homes for retirees, commercial sites, shared ownership properties and garages and parking spaces.
All change: Stamp duty thresholds are changing from 1 April 2025
As a result of a Budget announcement by Rachel Reeves in October, someone buying a £250,000 property will owe £2,500 in stamp duty from April.
This returns the threshold to the level it was at before 2022, when temporary cut was made by the Conservative government.
A buyer purchasing a £300,000 property will need to fork out £5,000 on stamp duty, on top of expenditure for surveys, legal conveyancing fees and moving costs.
There is an exception for first-time buyers, who won’t pay stamp duty on properties under £300,000.
Babek Ismayil, founder and chief executive of OneDome, said: ‘The idea of buying a home in London is increasingly becoming a pipe dream for average earners.
‘The drop in the stamp duty threshold is yet another hurdle for buyers already facing soaring house prices, strict lending criteria, and the challenges of securing a mortgage.
‘The reality is that a £125,000 budget in London barely gets you a glorified bedsit – and even those are in very short supply.’
He added: ‘With the stamp duty rule change coming on 1 April, some buyers who miss the deadline may rethink their purchase plans.
‘For those still in the process, restarting their transaction to secure the tax saving could be an option, particularly if the potential savings are significant.
‘Others may look to renegotiate their offer, factoring in the added stamp duty cost.
‘In a market where affordability remains a challenge, buyers will be keen to minimise costs wherever possible, and sellers may need to be flexible to keep deals on track.’
Richard Donnell, executive director at Zoopla told This is Money: ‘Higher house prices in London mean buyers will be disproportionately impacted by stamp duty changes coming into effect on the 1 April.
‘However, what is really needed from the government is longer-term measures like boosting supply, as this will improve affordability in London and also reduce the pressure on the private rented sector’.
What can you buy in London for £125,000 or less?
This is Money looks at 11 properties on sale for £125,000 or less in London and Greater London.
When buying a budget flat, it is important to find out why the property is so cheap. It may be that there are issues such as a short lease, structural problems or even legal issues which the future owner would need to contend with.
This studio in Hounslow is on sale via Stamfords for £99,950.
An offer of £95,000 has been made for the studio, but prospective buyers are, according to the estate agent, still welcome to submit their own offer before contracts are exchanged.
The property is available to cash buyers only and is in need of modernisation.
Budget choice: A studio in this building in Hounslow is on sale via Stamfords for £99,950
Bid: An offer of £95,000 has been made on the Hounslow studio, Stamfords said
This second studio is in the same property as the Hounslow studio above.
However, this studio, also available via Stamfords, is on sale for less, at £90,000.
The £90,000 ground floor studio comprises a living and kitchen space and a shower room. It is available to cash buyers only and is in need of modernisation.
On the market: This ground floor studio is on sale via Stamfords for £90,000
Options: The studio has a living and kitchen space and a shower room
This one-bedroom top floor flat in Catford, SE6, is on sale via Mann estate agency for £120,000.
An offer of £140,5000 has already been received for the flat. Mann estate agents said interested buyers can submit higher bids before contracts are exchanged.
There are 66 years remaining on the lease and it has an annual ground rent of £100.
Leasehold properties with a lease under 80 years can be difficult to get a mortgage on or sell, which may be why the price is so cheap.
Interested? This one-bed flat in London has received an offer of £140,500
Take note: The flat is on sale for £120,000 and has 66 years remaining on the lease
This studio in Croydon is on sale via Jukes & Co. for £110,000. It is being sold via secure sale online bidding.
The studio is 227 sq ft and has an annual ground rent of £350, as well as an annual service charge of £1,850. There are 116 years remaining on the lease.
Jukes & Co. said the studio makes an ‘attractive option for those seeking security in their investment.’
Bargain: This studio in Croydon is on sale via Jukes & Co. for £110,000
Space: The studio in Croydon is 227 sq. ft. and has an annual ground rent of £350
This studio in Hounslow is on sale via Barnard Marcus for £120,000. An offer of £112,000 has been made and accepted on the property, but it is still available to view.
The ground-floor studio has an integrated kitchen area and bathroom space. It has 106 years remaining on the lease.
Have a look: This studio is on sale via Barnard Marcus for £120,000
Offer: An offer of £112,000 has been made for the studio, but viewings are still available
This studio in Uxbridge is on sale via Christopher Nevill for £110,000. It is available to cash buyers only.
The studio has electric heating and comes with an allocated parking space.
There are 62 years left on the lease and the studio has a ground rent of £150 per year. The annual service charge for the property is £1,597.
Cash buyers: This studio in Uxbridge is on sale via Christopher Nevill for £110,000
Lease matters: There are 62 years remaining on the lease of the studio in Uxbridge
This studio in Brixton is on sale via Foxtons for £125,000. It is 221 sq ft and situated on the ground floor. It is available for cash buyers only.
The studio has an open-plan kitchen, studio room space and modern shower room.
London life: This studio in Brixton is on sale via Foxtons for £125,000
Compact: The studio in Brixton is 221 sq. ft. and situated on the ground floor
This one-bedroom first-floor flat is on sale via Hunters with a guide price of between £120,000 to £130,000.
The flat is over 400 sq ft and has a living room, a fitted kitchen and a bathroom.
It provides a blank canvas for buyers keen to add their own style and create a personalised space.
This one-bedroom flat in Belvedere is on sale via Hunters for £120,000
Updates: The flat would benefit from some DIY but is in good condition
This first-floor studio in Uxbridge is on sale via Christopher Nevill for £120,000.
The studio has a living space, kitchen and parking space. The lease has 62 years left to run on it.
The property is open to cash buyers only.
Good condition: This first-floor studio in Uxbridge is on sale via Christopher Nevill for £120,000
Lease length: There are 62 years left to run on the lease for this studio in Uxbridge
This studio in Harrow is on sale via Foxtons for £125,000, which is 168 sq ft It has a private entrance and its own garden space.
Foxtons said a new lease will be ‘provided upon completion’ and represents an ‘excellent investment opportunity.’
Check it out: The only picture available of the apartment is from the outside
This second-floor studio in Hounslow is on sale via Shaw & Co. for £125,000. It is in the same property as number five in this piece.
The property, which is 344 sq ft, has a fully equipped kitchen and well-maintained bathroom.
Shaw & Co. said the studio was a good opportunity for investors or first-time buyers.
Opportunity: This second-floor studio in Hounslow is on sale via Shaw & Co. for £125,000
Well-maintained: The property is neat and looks as if it has been recently decorated