London and the South East account for most of the rise after thresholds reverted last year
First-time buyers have paid an additional £307 million in stamp duty since the stamp duty holiday ended last year, increasing the tax bill by an average of £4,618 per purchase.
Figures, which were analysed by property listing platform Rightmove, were based on first-time buyer transactions from 1 April 2025, after the temporary nil-rate threshold for first-time buyers reverted.
In March 2025, the zero-rate stamp duty threshold for first-time buyers stood at £425,000. Rightmove said 62% of homes on the market were priced below that level, meaning they were not subject to stamp duty for first-time buyers. From April 2025, the zero-rate threshold fell back to £300,000.
Rightmove said that, a year later, 41% of homes for sale in England are within the price bracket, reducing the volume of stamp duty-free options available to first-time buyers.
| Avg stamp duty bill per transaction (by property price) | |||
|---|---|---|---|
| Property price | Apr24–Mar25 | Apr25–Mar26 | Avg stamp duty increase per transaction |
| Less than £300,000 | £0 | £0 | £0 |
| £300,001 - £425,000 | £0 | £3,094 | £3,094 |
| £425,001 - £500,000 | £2,171 | £8,447 | £6,276 |
| £500,001 - £625,000 | £7,074 | £18,260 | £11,186 |
| Source: Rightmove | |||
Rightmove’s regional breakdown suggests the tax paid by first-time buyers is concentrated in higher-priced areas. London accounts for just over half of the estimated £408 million paid since the threshold returned to £300,000, with the South East contributing about a quarter.
By contrast, regions including the North East and the East Midlands represent a small share of the total, which Rightmove attributed to a larger proportion of homes priced below £300,000 and therefore remaining stamp duty-free for first-time buyers.
| Stamp-duty contribution by region | |
|---|---|
| Region | Stamp-duty contribution |
| East Midlands | 1% |
| East of England | 10% |
| London | 53% |
| North East | 0.3% |
| North West | 2% |
| South East | 23% |
| South West | 8% |
| West Midlands | 2% |
| Yorkshire and The Humber | 1% |
| Source: Rightmove | |
Rightmove said the figures showed the current national thresholds were increasingly out of step with regional house prices, noting that the thresholds have not been permanently increased since their introduction in 2017.
“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 upfront moving costs,” said Colleen Babcock (pictured right), property expert at Rightmove.
“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.
“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.”
For Nathan Emerson, chief executive of industry body Propertymark, the figures underline the increasing strain on first-time buyers, agreeing with Babcock that higher stamp duty costs are 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,” Emerson said. “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.”
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