First-time buyers are paying an average of £4,618 more in stamp duty since the £425,000 threshold was removed last year, according to figures from Rightmove.
The property portal is calling on the government to consider reforms to the property tax, as the figures reveal an extra £307 million has been collected from first time buyers in the last year. The total estimate first time buyer stamp duty bill was £408 million over the last 12 months, compared to £101 million the year previously.
With the temporary zero-rate stamp duty threshold for first-time buyers at £435,000, 62% of all homes for sale were free from the tax. That reduced to 41% of homes for sale when the threshold returned to £300,000, leading to an average stamp duty increase of £3,094 for homes up to £425,000, £6,276 for homes between £425,001-£500,000, and £11,186 for homes priced between £500,000-£625,000.
The change has affected 53% of the homes for sale in London and 23% of properties in the South East. In the North east of England, just 0.3% of homes are affected.
“With the majority of stamp duty paid by first-time buyers coming from London and the South East, current national thresholds appear increasingly misaligned with regional property prices,” Rightmove said.
| 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% |
Colleen Babcock, property expert at Rightmove, added: “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.
“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.”
Nathan Emerson, CEO of Propertymark, said the reduction in the threshold has reduced the availability of suitable homes and prevents many home-seekers from entering the market.
“These figures underline the increasing strain on first-time buyers, with higher stamp duty costs adding to already significant affordability challenges,” he 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.”
