Average buyers faced a £2,500 jump when the nil-rate threshold fell last year
Homebuyers paid £15.2 billion in Stamp Duty Land Tax (SDLT) in the 2025-26 tax year, up £1.3 billion (9.2%) on the £13.9 billion collected in 2024-25, according to Coventry Building Society’s analysis of HMRC figures.
The mutual attributed the rise largely to the nil-rate threshold falling last April from £250,000 to £125,000, saying the change increased the stamp duty bill on an average-priced home in England by £2,500 overnight.
The £125,000 threshold was introduced in December 2014, when the average property price in England stood at £191,523. The latest UK House Price Index puts the average in England at £290,000 — more than £98,000 higher — which Coventry said has pushed more purchases into tax bands as prices have risen.
Figures in the Office for Budget Responsibility’s Economic and Fiscal Outlook suggest property taxes — including stamp duty, devolved property taxes and the Annual Tax on Enveloped Dwellings — will rise to an estimated £19.7 billion this tax year, and reach £28 billion by 2030.
“Stamp Duty is a big chunk of money on top of an already expensive process,” said Jonathan Stinton (pictured right), head of intermediary relationships at Coventry Building Society. “With house prices rising so sharply over the past decade, out-of-date thresholds are pulling far more buyers into the tax net.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.”
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