Stamp duty hits 80% of London first-time buyers vs 10% in the North

Across England in the first half of 2026, fewer than 1 in 10 first-time buyers have paid stamp duty across Northern England, compared to 51% in the South East and nearly 8 in 10 in London.

Stamp duty has seen many changes over the last decade. It now operates as two entirely different taxes, dependent on two key factors: the location of the property purchase and whether you’re a first-time buyer or existing homeowner.

The £300,000 line that divides the country’s first-time buyers

First-time buyers get relief from stamp duty and pay nothing up to £300,000. 6 in 10 first-time buyers in the UK pay nothing at all.

The location of the transaction determines the true cost of buying a first home.

In the North East, just 2.1% of first-time buyers face a stamp duty bill. In Yorkshire and the Humber the figure is 3.8%, and in the North West and West Midlands, 6.2% and 9.3% respectively. 

In each case, the majority of first-time buyers are buying at prices that sit comfortably below the £300,000 threshold where relief ends.

The South East and East of England sit at the tipping point with 51% and 52% of first-time buyers paying stamp duty. In these areas, the average price of a home where stamp duty is paid is £395,000 and £390,000 respectively, well above the national average.

In London, nearly 8 in 10 (79.7%) pay stamp duty where the average first-time buyer price is £475,000. The average stamp duty bill is £8,750 - this is cash that must be saved separately from a deposit and paid in full at completion.

These stamp duty bill figures are median averages for buyers who pay stamp duty based on the homes they were looking to buy in the first half of 2026. First-timers buying below £300,000 pay nothing and are excluded from the median bill calculation. Rates shown as pence paid per £1 of the median purchase price for those who pay.

Stamp duty is an inevitability for home-movers

For existing homeowners buying their next property, there is no relief from stamp duty. 

More than 4 in 5 home-movers pay stamp duty in every English region bar the North East, where nearly two-thirds (63.5%) face a bill.

In the North, bills are modest. Stamp duty averages £2,200 in both Yorkshire and the North West. Home-movers here pay less than 1 penny in every pound of their purchase price as stamp duty.

Across Southern England, the burden rises sharply and can have a big impact on the overall cost of moving home and whether people can afford to move at all. 

95% of South East home-movers pay stamp duty at an average cost of £11,250, which is 2.7 pence in every pound. 

In London, where the median home mover asking price is £600,000, the bill reaches £20,000. That’s more than 3 pence in every pound.

Stamp duty creates a gridlock effect and builds fiscal drag

Home-movers are an important part of the housing market, accounting for 6 in every 10 property purchases. 

When moving costs climb to five figures in Southern England, people are put off moving at all. This reduces demand for larger homes and also limits the supply of starter homes available to first-time buyers.

The growing cost of stamp duty for homebuyers has been compounded by house price growth outpacing stamp duty price bands. This creates an effect akin to a ’fiscal drag’ that boosts the cost of stamp duty tax over time.

Current stamp duty thresholds do not reflect recent house price growth

The current threshold of starting the 5% stamp duty rate at £250,000 for home-movers was introduced more than 11 years ago in 2014.

If this was adjusted in line with house price growth, the threshold would be around £380,000 today.

This would save the average home buyer up to £6,500 in stamp duty for purchases between £250,000 and £380,000.

About the data

This analysis is based on buyer enquiries to estate agents and home builders for homes listed on Zoopla across England in the first half of 2026 (January to June). 

Stamp duty land tax (SDLT) liability is calculated at the asking price of the property enquired about, on the assumption buyers pay the asking price. This is a leading indicator of buying costs based on active enquiry data, not a record of completed transactions.

These calculations do not factor in any extra stamp duty liable from owning more than one property and buying an additional property such as a second home.

First-time buyer relief thresholds from 1 April 2025: no SDLT on the first £300,000 for properties valued up to £500,000. Standard rates apply in full where the property value exceeds £500,000.