Homebuyers paid £15.2bn in Stamp Duty Land Tax in the 2025-26 tax year, up 9.2% on the previous year as falling thresholds dragged more transactions into the tax net.
Analysis of HM Revenue & Customs data by Coventry Building Society shows receipts rose from £13.9bn in 2024-25, driven largely by the reversion of the nil-rate threshold from £250,000 to £125,000 in April 2025.
The change increased the tax bill on an average-priced home in England by around £2,500 overnight, according to the lender.
The current £125,000 threshold was first set in 2014, when the average property price in England stood at £191,523. Latest figures from the UK House Price Index put the average at £290,001, highlighting how price growth has pushed more buyers above the tax threshold.
RISING BURDEN
And the Office for Budget Responsibility forecasting property tax receipts – including stamp duty and related levies – will reach £19.7bn this year and increase to £28bn by 2030.
Jonathan Stinton, Head of Mortgage Relations at Coventry Building Society, says: “Stamp duty is a big chunk of money on top of an already expensive process. With house prices rising so sharply over the past decade, out-of-date thresholds are pulling far more buyers into the tax net.
“Homes that once sat comfortably below the starting point are now being caught simply because prices have moved on.
“With inflation now at 3.3% the cost of living remains a real pressure – many aspiring buyers are already juggling higher everyday expenses, making a hefty bill even harder to absorb.
“Covering the tax could mean people need to dig deeper into savings, lean on family for support, or compromise on the kind of home they want to buy. It makes it harder to take the next step, whether that’s upsizing, downsizing or moving when family circumstances change.
“Reforming stamp duty would give buyers meaningful support at a time when many are already stretched. Without change, the risk is we continue to penalise aspiration and slow down a housing market that depends on people being able to move freely.”
