Stamp Duty nets £307m more in the year since its change

Newsletter issue – May 2026

First-time buyers are paying significantly more in stamp duty since temporary tax relief ended in April 2025. Over the past year, they collectively paid £408m in stamp duty - up from £101m the previous year.

The tax-free threshold for first-time buyers dropped from £425,000 to £300,000, increasing upfront costs. On average, buyers now pay about £4,618 more in stamp duty than before.

The change comes at a time when mortgage rates remain high, adding further pressure on new buyers. Over half (53%) of the extra revenue comes from property sales in London, with just under a quarter (23%) contributed from sales in the South East. Many properties in the North East and East Midlands remain below the £300,000 tax-free limit, contributing only 1.3% between them.