England’s Stamp Duty Divide Is Putting Southern First-Time Buyers Under Pressure

Most first-time buyers in northern England remain below the stamp-duty relief threshold, while buyers in London, the South East and the East of England are increasingly required to fund an additional tax bill.

Stamp duty has seen many changes over the last decade. It now operates as two entirely different taxes, depending on where you buy and whether you’re a first-time buyer or an existing homeowner.

First-time buyers: the £300,000 line that divides the country

First time buyers get relief from stamp duty and pay nothing up to £300,000. 3 in 8 first-time buyers (38%) pay stamp duty nationally – but 6 in 10 pay nothing at all. Where you buy determines the extra cost of buying your 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 they would have to start paying stamp duty.

The South East and East of England are at the tipping point with 51% and 52% of first-time buyers in those regions paying stamp duty that adds to the cost of buying. 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: the average first-time buyer house price is £475,000. The average stamp duty bill is £8,750, and this is cash that must be saved separately from a deposit and paid in full at completion.

Stamp duty costs and payment rates by English region

Note: Stamp duty bill figures are median averages for buyers who pay stamp duty based on the homes they were looking to buy in H1 2026. FTBs 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.

In the North and Midlands, the £300,000 threshold takes 9 in 10 first-time buyers out of paying anything extra to buy their home. In London and the South East, however, the cost of buying an average first-time buyer home is above £300,000 for many buyers, which means the majority of first-time buyers face a stamp duty bill on top of an often sizeable deposit.

For home movers, stamp duty is a near-certain cost wherever you live – and in Southern England it runs to five figures. 6 in 10 property purchases are made by existing homeowners. When the cost of moving becomes a meaningful friction, some of those moves don’t happen, especially with lower levels of house price inflation in recent years across southern England.

Home-movers: stamp duty an inevitability

For existing homeowners buying their next property, there is no relief from stamp duty like that available for first-time buyers. This means more than 4 in 5 homeowners 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 – averaging £2,200 in both Yorkshire and the North West, where home-movers 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 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 – 2.7 pence in every pound. In London, where the median home mover asking price is £600,000, the bill reaches £20,000: more than three pence in every pound.

The gridlock effect and 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, some of those moves do not happen. 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 home buyers has been compounded by stamp duty price bands not keeping pace with house prices – akin to ’fiscal drag’ that boosts the cost of stamp duty tax over time.

The current £250,000 threshold where the 5% stamp duty rate starts for home movers was introduced over 11 years ago in 2014. If this was adjusted in line with house prices it would be around £380,000 today, saving the average home buyer up to £6,500 in stamp duty for purchases between £250,000 and £380,000.

A reminder of stamp duty thresholds in England

First-time buyers

Below £300,000 – you pay nothing. First-time buyer relief gives full exemption up to the threshold. At £299,000, the stamp duty bill is zero.

Above £300,000 – you pay 5% on the excess only. The rate applies to the amount above the threshold, not the full purchase price. At £350,000, that is 5% × £50,000 = £2,500.

Watch the £500,000 cliff edge. Above £500,000, first-time buyer relief disappears entirely. A property at £499,000 costs £9,950 in stamp duty. A property at £501,000 costs £15,050 — an extra £5,100 for a £2,000 more expensive home. If your search takes you near that level, factor it into your offer.

Home-movers

There is no equivalent stamp duty relief to first time buyers. Standard rates apply from £125,000 upwards: 2% on the portion between £125,000 and £250,000, then 5% on the portion between £250,000 and £925,000. Most home movers in England fall into the 5% band over £250,000.

Know your rate before you offer. The average stamp duty in the South East, is £11,250. In London the average price is £600,000 and £20,000 in stamp duty. Use a stamp duty calculator before making an offer – the bill is fixed at the price you agree and is due in cash at completion.

Key takeaways

• Around six in ten first-time buyers nationally pay no stamp duty, but the likelihood of paying varies significantly by region.
• Nearly 80% of London first-time buyers face a stamp-duty charge, compared with fewer than one in ten in several northern regions.
• The average London first-time buyer purchasing above the relief threshold faces a bill of approximately £8,750.
• Around half of first-time buyers in the South East and East of England now pay stamp duty as typical purchase prices move beyond the £300,000 relief threshold.
• Stamp duty is even harder to avoid for existing homeowners, with more than four in five home movers paying it in most English regions.
• London home movers face the greatest burden, with a typical bill of approximately £20,000 among those who pay.