Homebuyers paid £15.2bn in stamp duty in the 2025-26 tax year, £1.3m (9.2%) more than in 2024-25 (£13.9bn), according to Coventry Building Society’s analysis of HMRC figures.
The increase is largely due to the nil-rate thresholds falling from £250,000 back to £125,000 last April. The change meant the tax bill on an average priced home in England increased by £2,500 overnight.
The £125,000 threshold was initially introduced in December 2014, when the average UK property price in England was £191,523. According to the latest UK House Price Index, the average price in England is now £290,001 - an increase of more than £98,000. It means many homes that sat comfortably below tax bands a decade ago now incur a charge simply because prices have climbed.
The Office for Budget Responsibility’s Economic and Fiscal Outlook shows property taxes – including stamp duty, devolved property taxes, and the annual tax on enveloped dwellings – is set to increase to an estimated £19.7bn this tax year, and balloon to £28bn by 2030.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Stamp duty is a big chunk of money on top of an already expensive process. With house prices rising so sharply over the past decade, out-of-date thresholds are pulling far more buyers into the tax net. Homes that once sat comfortably below the starting point are now being caught simply because prices have moved on.
“With inflation now at 3.3% the cost of living remains a real pressure – many aspiring buyers are already juggling higher everyday expenses, making a hefty bill even harder to absorb. Covering the tax could mean people need to dig deeper into savings, lean on family for support, or compromise on the kind of home they want to buy. It makes it harder to take the next step, whether that’s upsizing, downsizing or moving when family circumstances change.
“Reforming stamp duty would give buyers meaningful support at a time when many are already stretched. Without change, the risk is we continue to penalise aspiration and slow down a housing market that depends on people being able to move freely.”
