New analysis from Rightmove has revealed that since the stamp duty holiday ended in April 2025, first-time buyers have paid an estimated extra £307 million in stamp duty, increasing the bill by an average of £4,618 per transaction.
The total estimated first-time buyer stamp duty bill over the past year was £408 million, versus £101 million the previous year.
Rightmove’s analysis of first-time buyer property purchases since 1st April 2025 shows a significant increase in stamp duty paid by first-time buyers purchasing homes in this price range.
For properties priced between £300,001 and £425,000, the average stamp duty increase per transaction is £3,094. For properties with prices ranging from £425,001 to £500,000, this rises to £6,276. This then jumps up to £11,186 for properties priced between £500,001 and £625,000.
In March 2025, the temporary zero-rate stamp duty threshold for first-time buyers was £425,000. 62% of homes for sale were priced under this threshold, and therefore free from stamp duty tax to first-time buyers.
The zero-rate threshold reverted to £300,000 for first-time buyers from April 2025, after the holiday ended. A year on, less than half of homes for sale in England (41%) are in this price bracket, meaning first-time buyers have less stamp duty-free stock to choose from.
Stamp duty paid by first-time buyers is heavily concentrated in London and the South. London alone accounts for just over half of the estimated £408 million paid since the threshold fell to £300,000, with the South East contributing around a quarter.
In contrast, regions such as the North East and East Midlands contribute only a very small share, largely because more homes there are priced below £300,000 and remain stamp duty free.
Rightmove is calling on the government to consider stamp duty reform, claiming that today’s figures show how heavily the tax burden on first-time buyers is concentrated in higher-priced parts of the country, and that 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.
These thresholds have not risen permanently since they were first introduced in 2017.
Colleen Babcock, property expert 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."
