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First-time buyers have paid an estimated £307m more in stamp duty since the end of the holiday in April 2025, according to new analysis from Rightmove, with the average bill rising by £4,618 per purchase.
The increase follows the reduction of the zero-rate threshold from £425,000 to £300,000. Before the change, 62% of homes were priced below the threshold and exempt from stamp duty for first-time buyers. A year later, that figure has fallen to 41%, reducing the availability of stamp duty-free properties.
| Property price | Avg stamp duty bill per transaction
Apr24-Mar25 |
Avg stamp duty bill per transaction
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 |
The impact is uneven across the country. Buyers in London account for just over half of the estimated £408m paid since the threshold was lowered, with the South East England contributing around a quarter.
In contrast, regions such as the North East England and East Midlands make up a much smaller share, as more properties in those areas remain below the £300,000 threshold.
The data highlights how the current system places a greater burden on buyers in higher-priced areas, where fewer homes fall within the tax-free bracket.
| 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% |
Rightmove said the figures raise questions about whether national stamp duty thresholds reflect regional property prices, noting that the current structure has remained largely unchanged since 2017.
Colleen Babcock, property commentator 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.
“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.”
Reflecting on Rightmove’s latest research, Nathan Emerson, CEO of Propertymark, said the figures underline the increasing strain on first-time buyers, with higher stamp duty costs “adding to already significant affordability challenges”.
He continued: “The reduction in the threshold has not only raised upfront costs but also reduced the availability of suitable homes, particularly in higher-value areas.
“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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