Homebuyers paid £899m in Stamp Duty Land Tax (SDLT) in January up 6% on the £848m recorded in the same month last year according to analysis by Coventry Building Society of the latest HMRC figures.
January is typically a quieter month for transactions as many buyers avoid completing over the festive period. Despite lower volumes, receipts remained high at the start of 2026.
Across 2025, homebuyers paid £15.4bn in Stamp Duty, an 18% increase on the £13bn collected in 2024.
The rise follows the nil-rate threshold reverting from £250,000 to £125,000 last April. When the £125,000 threshold was introduced in December 2014, the average UK house price stood at £176,561.
MORE TRANSACTIONS
According to the latest UK House Price Index, the average price reached £270,259 in December 2025, meaning significantly more transactions now fall within taxable bands.
Jonathan Stinton, Head of Intermediary Relationships at Coventry Building Society, says: “Stamp duty is one of those costs that really hits home because buyers have to find the money upfront – on top of their deposit and moving costs.
“While January is usually a quieter month for completions, it’s striking that buyers still handed over such a significant sum to the Treasury.”
URGENT REFRESH
He adds: “Over the past year, we’ve seen how changes to the nil-rate threshold have pushed more ordinary home purchases into paying tax.
“The £125,000 starting point might have made sense back in 2014, but house prices have moved on dramatically since then.
“As a result many buyers are now paying stamp duty simply because property values have risen, not because they’re buying larger homes.
“If stamp duty has any chance of being considered fair and proportionate, it has to reflect today’s market. We have seen the government make sudden changes in direction on policies and this would be a welcome one.
“An urgent refresh of the thresholds would bring the system back in line with reality and take some of the pressure off people trying to move.”
