Stamp duty has emerged as the biggest financial concern for homebuyers despite strong confidence levels heading into the spring market according to new research from LRG.
The firm’s Spring 2026 Sales Report found that 69% of buyers and sellers feel as confident about their property plans as they did a year ago, with nearly six in 10 expecting to complete a move within six months.
However, 30% of respondents cited stamp duty as their main concern, ahead of mortgage rates (11%), house price falls (19%) and the cost of living (23%).
The findings come one year after the reduction in stamp duty thresholds, which saw the nil-rate band for standard buyers fall from £250,000 to £125,000 and first-time buyer relief drop from £425,000 to £300,000.
STAMP DUTY IMPACT
Based on the current average asking price of £371,042 a typical home mover now faces a stamp duty bill of £8,552 – around £2,500 more than under the previous thresholds.
First-time buyers are also feeling the impact, now paying £3,552 on an average purchase where they would previously have paid nothing.
Despite this, demand remains resilient, with 59% of first-time buyers saying now is the right time to purchase, highlighting the underlying strength of buyer intent.
The data underlines growing pressure on policymakers to revisit stamp duty, as the tax increasingly becomes a barrier to transactions rather than borrowing costs.
OUTDATED TAX
Kevin Shaw (main picture, inset), National Sales Managing Director at LRG, says: “What our research shows is a market with a high percentage of motivated, prepared buyers.
“Nearly seven in 10 feel as confident as they did a year ago, and of those taking out a mortgage, 81% have already secured an Agreement in Principle. Recent increases in the cost of fixed-rate mortgages may dampen sentiment, but demand is real, and the intent is there.
“Stamp duty remains an outdated tax that restricts mobility and puts the brakes on economic activity.
“A year on from the threshold changes, we’re seeing that friction show up in buyer sentiment in a way that mortgage rates – even before last week’s decision to hold – simply aren’t.”
GOVERNMENT OPPORTUNITY
He adds: “The wider property market represents a significant portion of the economy – when transactions flow, solicitors, surveyors, mortgage brokers and removal companies all benefit.
“Stamp duty thresholds have failed to keep pace with property values over the long term, and reform is long overdue.
“Buyers are ready and motivated, and the government has an opportunity to make it easier for them.”
