STOCKPORT, UK, June 5, 2026 – New analysis from free personal finance platform Accepted.co.uk has revealed how the reduction in stamp duty relief thresholds has affected first-time buyers very differently depending on where they live. While purchasers in London and parts of southern England are now facing thousands of pounds in additional tax costs, many buyers across northern and central regions remain unaffected because average property prices continue to sit below the revised thresholds.
The study shows that first-time buyers in London now face an average stamp duty charge of £15,576, compared with £4,326 before the April 2025 changes, an increase of £11,250. In the South East, average buyers are paying an extra £3,399, while those in the East of England face an additional £2,326.
By contrast, buyers in six regions, including the North East, North West, East Midlands, West Midlands, Yorkshire and The Humber, and the South West, see no increase in stamp duty costs because average first-time buyer property values remain below the revised £300,000 nil-rate threshold. The threshold for first-time buyer relief was reduced from £425,000 to £300,000 on 1 April 2025.
Using Halifax’s first-time buyer property price data for 2024, Accepted.co.uk calculated the impact of the post-April 2025 stamp duty regime across every English region.
The findings reveal a significant postcode divide. In London, where the average first-time buyer property costs £511,514, stamp duty liabilities have risen from £4,326 to £15,576. Buyers in the South East, where the average purchase price is £367,974, now face a £3,399 tax bill after previously paying nothing. In the East of England, first-time buyers pay £2,326 more than before.
Meanwhile, first-time buyers in the North East, Yorkshire and The Humber, North West, East Midlands, West Midlands and South West continue to avoid stamp duty altogether because average property prices remain beneath the current nil-rate threshold.
STAMP DUTY BY REGION: BEFORE AND AFTER APRIL 2025
(Source: Halifax First-Time Buyer Review 2025 and Accepted.co.uk analysis. Based on average first-time buyer property prices in 2024. England only.)
David Morris, Personal Finance Editor at Accepted.co.uk, said: “The stamp duty changes introduced in April 2025 have created one of the most pronounced regional disparities in the housing market for many years.
“In London, the average first-time buyer is now paying more than £15,000 in stamp duty on top of a typical deposit of £124,688. That means nearly £140,000 is required upfront before a buyer can complete their purchase. At the same time, buyers in regions such as the North East experience no additional cost because average house prices remain below the threshold.
“What was intended as support for first-time buyers now disproportionately benefits lower-priced markets while placing a greater burden on those purchasing in the country’s most expensive areas.”
London is particularly affected because the average first-time buyer property price of £511,514 exceeds the £500,000 ceiling for first-time buyer relief. As a result, buyers in the capital no longer qualify for any first-time buyer stamp duty discount and instead pay the standard residential rates applied to all purchasers.
Before April 2025, a first-time buyer purchasing a property at London’s average price would only have paid stamp duty on the portion above £425,000, resulting in a bill of £4,326. Following the threshold changes, the same purchase attracts a stamp duty charge of £15,576 under standard residential rates, increasing costs by £11,250.
The additional tax burden comes on top of an average first-time buyer deposit of £124,688 in London, according to Halifax. Combined with stamp duty, prospective buyers in the capital now need more than £140,000 available before taking out a mortgage.
The higher stamp duty thresholds introduced by the Conservative government in September 2022 were implemented as a temporary measure. On 1 April 2025, the system reverted to its previous structure. For first-time buyers, the nil-rate threshold fell from £425,000 to £300,000, while the maximum property value eligible for first-time buyer relief was reduced from £625,000 to £500,000.
No further amendments to stamp duty have been announced during 2026, meaning the April 2025 rules remain in effect.
