A rising number of first-time homebuyers in England are now paying stamp duty as property prices exceed government thresholds, according to recent data from estate agent Connells. Approximately 30 percent of first-time buyers purchased homes valued over £300,000 last year, pushing them above the stamp duty exemption limit that came into effect on April 1, 2025.

The increase follows Chancellor Rachel Reeves’ decision not to extend the temporary stamp duty holiday, which previously raised the threshold for first-time buyers from £300,000 to £425,000 under the former government. In the first quarter of 2025, only 10 percent of first-time buyers opted for properties costing more than £425,000, a decline compared to the current figures. By comparison, a decade ago, just 14.8 percent of first-time buyers paid stamp duty, highlighting the recent upward trend.

Aneisha Beveridge, research director at Connells Group, noted that rising stamp duty costs add pressure to already stretched household finances, creating additional obstacles for prospective homeowners. “When affordability is already stretched, stamp duty costs create another hurdle for households trying to make the numbers stack up,” she said.

In response to concerns about the impact of stamp duty on the housing market, a cross-party group of Members of Parliament has called on the Treasury to abolish the tax, arguing that it hampers economic growth. Various reform proposals are under consideration, including eliminating the tax, reducing rates, or adjusting the levy to reflect local property values more accurately.

An HM Treasury spokesperson defended the current arrangements, emphasizing that first-time buyers continue to benefit from stamp duty relief on properties valued up to £300,000 and can claim further relief on homes costing up to £500,000. The spokesperson also highlighted recent efforts to streamline the homebuying process, which have reportedly saved first-time buyers an average of £710 and reduced transaction times.

As housing affordability remains a significant challenge, debate continues over how tax policy can better support first-time buyers while balancing government revenue needs.