UK first-time homebuyers are facing increased financial pressure following a recent change to stamp duty rules. Since the temporary stamp duty relief ended in April 2025, first-time buyers in England have paid an estimated £4,618 more on average, contributing to a collective £307 million increase in stamp duty costs.
Data from Rightmove reveals that the total stamp duty bill for first-time buyers rose sharply to £408 million over the past year, compared to just £101 million the previous year. This surge is largely due to the expiration of the stamp duty holiday and a reduction in the “nil rate” threshold from £425,000 to £300,000.
Colleen Babcock, property expert at Rightmove, highlighted the challenges faced by first-time buyers today: “First-time buyers are already grappling with higher mortgage rates and rising rents, making the extra stamp duty payments an additional burden.”
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Nathan Emerson, CEO of Propertymark, emphasized that the lowered threshold not only increases upfront costs but also limits the availability of suitable properties, particularly in higher-value market areas. “This change compounds affordability issues, making it harder for first-time buyers to enter the property market,” he explained.
Under the current rules, first-time buyers pay no stamp duty on homes up to £300,000. For property prices between £300,001 and £500,000, a 5% stamp duty is charged only on the amount above £300,000. For example, if a property is valued at £310,000, buyers will pay 5% on £10,000, amounting to a £500 stamp duty charge. Properties valued under £300,000 remain exempt from stamp duty, while those valued above £500,000 are subject to a 5% rate on the entire amount.
As a result of these changes, first-time buyers must carefully consider stamp duty costs when budgeting to enter the housing market.