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Stamp Duty Bill for First‑Time Buyers Jumps to £408m After Relief Ends

A lower £300,000 relief cap now pulls more starter homes into tax.

Overview

  • Rightmove estimates first‑time buyers in England paid £408 million in stamp duty over the past year, up about £307 million on the previous year and roughly £4,618 more per buyer.
  • The April 2025 rule change cut the first‑time buyer tax‑free limit to £300,000, with 5% now due on the portion up to £500,000 and no relief above that price.
  • London buyers accounted for 53% of the total paid and the South East for 23%, while lower‑priced regions such as the North East and East Midlands contributed only small shares.
  • Mortgage costs have risen since recent Middle East tensions rattled markets, which has further stretched new buyers already saving for deposits and fees.
  • Property experts say higher upfront tax in expensive areas reduces the supply of suitable starter homes and argue a single national threshold no longer matches local prices.