First-time buyers have paid an extra £307 millon in stamp duty over the past year following the end of temporary relief according to new analysis from Rightmove.
The data shows the total stamp duty bill for first-time buyers in England jumped to £408m between April 2025 and March 2026, up sharply from £101m the previous year. On average, buyers are now paying £4,618 more per purchase.
The increase follows the reduction in the zero-rate threshold from £425,000 to £300,000 in April 2025.
As a result, the proportion of homes available stamp duty-free to first-time buyers has dropped from 62% to 41%, significantly reducing accessible stock.
REGIONAL BREAKDOWN
The impact is most pronounced in higher-priced regions, where more properties now fall above the threshold. In London alone, first-time buyers account for more than half (53%) of all stamp duty paid, with the South East contributing a further 23%.
By contrast, northern regions contribute only marginally to the overall tax take, as a larger share of homes remain below the £300,000 threshold and therefore exempt.
Rightmove’s figures also show sharp increases in stamp duty across key price bands. Buyers purchasing homes between £300,001 and £425,000 now pay an average of £3,094, while those in the £425,001 to £500,000 bracket have seen costs rise by £6,276 to £8,447. For purchases up to £625,000, the average bill has climbed to £18,260.
The data highlights a growing regional imbalance in how stamp duty impacts buyers, with the current national threshold increasingly out of step with local house prices — particularly in London and the South.
Rightmove is calling for reform of the system, arguing that a single national threshold no longer reflects the realities of the market and risks further restricting access for first-time buyers.
FIRST-TIME BUYER STRAIN
Colleen Babcock (main picture, inset), Property Expert at Rightmove, says: “First-time buyers are already facing significant challenges, from higher mortgage costs to rising rents while they save, so it would really benefit first-time buyers if they could have a reduction in up-front moving costs.
“Our latest figures show just how much stamp duty costs have risen for first-time buyers since the threshold fell, particularly in London and the South East, where far more homes now sit above the zero-rate limit. This reduces choice and increases the savings needed before buyers can even consider moving.”
She adds: “With the majority of first-time buyer stamp duty now coming from a small number of higher priced regions, it highlights how a single national threshold no longer reflects local housing markets.
“A more regionally aligned approach to stamp duty could better support first-time buyers where affordability pressures are greatest, while also helping to encourage more movement across the housing ladder.”
BARRIER TO ENTRY
Nathan Emerson, CEO of Propertymark, says: “These figures underline the increasing strain on first-time buyers, with higher stamp duty costs adding to already significant affordability challenges.
“The reduction in the threshold has not only raised upfront costs but also reduced the availability of suitable homes, particularly in higher-value areas.
“What agents are seeing in practice is a growing regional imbalance. Buyers in London and the South are disproportionately affected, highlighting how current national thresholds no longer reflect local market conditions.
“Stamp duty continues to act as a barrier to entry and wider market movement and should be reviewed, including consideration of more flexible or regionally aligned thresholds, to better support first-time buyers and improve overall housing mobility.”
