Stamp duty receipts totalled £15.2 billion in the 2025 to 2026 tax year, representing a £1.3 billion increase on the previous year, according to analysis of HMRC data by Coventry Building Society.
The 9.2% rise follows changes to stamp duty thresholds implemented in April, when the nil-rate band reverted from £250,000 to £125,000, bringing more property transactions into the tax net.
Impact on homebuyers
Jonathan Stinton, Head of Intermediary Relationships at Coventry Building Society, said the threshold change has increased upfront costs for buyers. “With house prices rising so sharply over the past decade, out-of-date thresholds are pulling far more buyers into the tax net,” he said. “Homes that once sat comfortably below the starting point are now being caught simply because prices have moved on.”
The increased tax burden comes as inflation stands at 3.3%, adding pressure to household budgets. According to Stinton, many buyers are now required to draw more heavily on savings or seek family support to cover the additional costs.
The threshold reduction has affected market dynamics across the sector, with implications for both owner-occupiers and investors. Recent analysis of UK flat sales facing pressure has highlighted how tax changes interact with other market factors.
Calls for policy reform
Stinton has called for stamp duty reform, arguing that the current structure penalises buyers and restricts market mobility. “Reforming stamp duty would give buyers meaningful support at a time when many are already stretched,” he said. “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.”
The stamp duty debate continues alongside other policy discussions affecting the property sector, including rental reforms currently under consideration.
The £15.2 billion tax take represents a significant revenue stream for the Treasury, though industry voices argue it creates barriers to market entry and mobility for buyers navigating an already challenging affordability environment.
