"With deposits, moving expenses, and legal fees already stretching people thin, adding a big tax bill on top can make moving feel out of reach. That kind of pressure doesn’t just affect first-time buyers; it can slow the whole market down"
- Jonathan Stinton - Coventry Building Society
Homebuyers paid £6.6bn in Stamp Duty during the first half of the year, marking a 21% rise compared with the £5.4bn paid over the same period in 2024, according to analysis by Coventry Building Society based on the latest HMRC data.
In June alone, Stamp Duty receipts reached £1.1bn, up 15% from the £918m paid in May.
This is the third consecutive month since the nil-rate threshold for Stamp Duty was lowered from £250,000 to £125,000 on 1 April. The change has increased the tax burden for many buyers, adding £2,500 to the cost of purchasing an average-priced home. The typical bill has climbed from £1,816 to £4,316.
Last week, the government announced the Mortgage Guarantee Scheme would become permanent, as part of a broader push to increase homeownership. This follows recent adjustments to loan-to-income limits and new guidance on lender stress testing.
“There’s been a flurry of new measures to support homebuyers recently, but they’ve landed just months after Stamp Duty bills jumped by thousands,” said Jonathan Stinton, head of mortgage relations at Coventry Building Society. “While the new Mortgage Guarantee Scheme and changes to affordability rules show real intent to boost homeownership, those higher tax costs haven’t gone away."
“With deposits, moving expenses, and legal fees already stretching people thin, adding a big tax bill on top can make moving feel out of reach,” he continued. “That kind of pressure doesn’t just affect first-time buyers, it can slow the whole market down."
“If the government really wants to support people at every stage of the journey, reforming Stamp Duty should be next on the list.”
