Rightmove again calls for stamp duty reform

• Rightmove is once again asking the government to consider a reform to stamp duty, in light of new figures that show the increased cost to first-time buyers.
• First-time buyers paid an extra £307 million in stamp duty since the tax-free threshold dropped back down to £300,000 in April 2025.
• More than half of the total £408 million paid by first-time buyers since April 2025 comes from London, with most of the rest coming from the South.

Rightmove is again calling on the government to consider stamp duty reform in light of figures showing how first-time buyers face significantly higher upfront costs from stamp duty compared with a year ago.

Until the end of March 2025, first-time buyers paid no stamp duty on homes priced up to £425,000. From April 2025, that tax-free threshold dropped back down to £300,000. 

As a result, first-time buyers paid an estimated £408 million in stamp duty between April 2025 and March 2026, compared with just £101 million the year before. This means that the average first-time buyer has paid £4,618 more to complete their purchase in the past year.

The figures also show that first-time buyers in higher‑priced parts of the country are carrying most of this tax burden.

Stamp duty thresholds unchanged since 2017

With most stamp duty paid by first-time buyers coming from London and the South East, current national thresholds for stamp duty appear out of touch with property prices. These thresholds have not risen permanently since they were first introduced in 2017, despite significant prices growth in many UK regions since that time.

Colleen Babcock, property expert at Rightmove, says:

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.

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.

How much more stamp duty are first-time buyers paying?

The amount first-time buyers pay depends on the price of the home they buy. However, many now have far fewer homes they can buy without paying stamp duty, and many are being pulled into price brackets where thousands of pounds are due. 

Prior to the end of the tax-free relief, 62% of homes for sale were below the stamp duty threshold for first-time buyers, meaning most paid no stamp duty at all. However, that figure has now fallen to just 41%.  

First time buyer stamp duty charges 2024-26

Collectively, homes priced between £300,001 and £425,000 alone generated an estimated £145 million in stamp duty from first-time buyers over the past year. 

Meanwhile, those spending more on their first home have felt the greatest individual impact. Homes priced between £500,001 and £625,000 now face an average stamp duty bill of £18,260, up by more than £11,000 compared with the previous year. 

Where are first-time buyers most affected? 

For many first-time buyers, finding several thousands of additional pounds on top of deposits, legal fees and moving costs can have a significant impact. With fewer stamp duty free homes available, buyers may find themselves stretching budgets or compromising on location or property type to avoid the extra cost. 

This is likely to be the reality facing many purchasers in London and the South of England. The capital alone accounted for 53% of the estimated £408 million that was paid between April 2025 and March 2026, with the South East making up a further 23%, and the East of England contributing another 10%. 

In contrast, regions further north generally pay less. Yorkshire and The Humber was responsible for just 1%, while the North East accounted for 0.3%. Both are areas in which typical first-time buyer homes are still largely priced below £300,000.

If you’re a first-time buyer, understanding stamp duty costs early can help you to avoid surprises later on. You can use our stamp duty calculator to get a clearer idea of the costs, and explore our full stamp duty guide for more information.

Notes

• Rightmove analysed the total number of first-time buyer properties (0-2 bed) purchased in England between 1 April 2025 to 31 March 2026 within £300,001 – £625,000 price range, to estimate the amount of stamp duty paid
• From 1 April 2025, the stamp duty-free threshold reverted from £425,000 to £300,000
  • Since the end of the temporary stamp-duty holiday, typical first-time buyer properties (0-2 bedrooms) priced £300,001 – £425,000 have generated an estimated £145 million in tax over the past year, averaging £3,094 per buyer
  • Properties priced between £425,001 – £500,000, now pay an average bill of £8,447 per buyer, up from £2,171, generating £111 million in tax
  • Homes priced between £500,001 – £625,000, which no longer benefit from first-time buyer relief, now pay an average of £18,260 in stamp duty, contributing a total of £152 million to the government