First-time buyers in England have paid an average of £4,618 more in stamp duty over the past 12 months following the end of temporary relief measures, according to data released by Rightmove.
The property portal estimates the government has collected an additional £307 million from first-time buyers since April 2025, when the stamp duty threshold was reduced from £425,000 to £300,000. Total first-time buyer stamp duty receipts reached £408 million in the past year, compared to £101 million in the previous 12-month period.
Market impact of threshold reduction
The threshold change has significantly altered the proportion of properties accessible to first-time buyers without stamp duty liability. Before April 2025, 62% of homes for sale were stamp duty-free for first-time buyers, a figure that has now fallen to 41%.
The data shows that more than half of the total stamp duty paid by first-time buyers comes from London, with most of the remainder concentrated in the South East. This regional concentration reflects the higher property values in these areas relative to the new £300,000 threshold.
Colleen Babcock, Head of Partner Marketing at Rightmove, said: “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 up-front moving costs.”
The findings come as the UK housing market experiences slower activity amid mortgage rate volatility, adding further pressure on those attempting to enter the property market.
Industry calls for reform
Nathan Emerson, CEO at Propertymark, commented on the figures: “These figures underline the increasing strain on first-time buyers, with higher stamp duty costs 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 advocated for a review of the current system, including consideration of more flexible or regionally aligned thresholds to support first-time buyers and improve overall housing mobility.
The increased costs come at a time when prospective buyers are already contending with elevated mortgage rates and rising rental costs that make saving for deposits more challenging. The stamp duty changes particularly affect buyers in London and the South East, where property prices regularly exceed the £300,000 threshold, making stamp duty an unavoidable cost for the majority of first-time purchasers in these regions.
