Stamp duty receipts reach £15.2bn as lower thresholds drive higher tax bills
Homebuyers paid £15.2bn in stamp duty in 2025-26 as falling thresholds and rising house prices increased tax exposure.
Homebuyers paid £15.2bn in stamp duty land tax during the 2025-26 tax year, up from £13.9bn the previous year, according to analysis of HMRC data by Coventry Building Society.
The increase follows the reduction in the nil-rate threshold from £250,000 to £125,000 last April, a change which raised the tax bill on an average priced home in England by £2,500.
The £125,000 threshold was originally introduced in December 2014, when the average house price in England was £191,523. Latest figures show the average property price has risen to £290,001, meaning more buyers are now being drawn into the tax net as values increase.
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“With house prices rising so sharply over the past decade, out-of-date thresholds are pulling far more buyers into the tax net.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.”
The Office for Budget Responsibility forecasts that property taxes, including stamp duty and other related charges, will rise to £19.7bn this tax year and reach £28bn by 2030.
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