First-time buyers are paying thousands more to get on the property ladder after stamp duty changes overseen by Chancellor Rachel Reeves came into force.
New figures show buyers in England have faced an average increase of around £4,618 since temporary relief ended in April 2025.
The increase reflects the impact of a lower tax-free threshold for first-time buyers, based on analysis of recent transactions by Rightmove.
Under the previous system, buyers paid no stamp duty on properties up to £425,000. That threshold was reduced to £300,000 once the relief expired, significantly increasing upfront costs.
The change has added further pressure for would-be homeowners already dealing with higher mortgage rates, with borrowing costs remaining elevated amid ongoing global tensions.
Collectively, those purchasing their first property have paid an estimated £307million more in stamp duty over the past twelve months compared to the previous year.
The total bill reached £408million, a dramatic rise from just £101million during the preceding period.
The capital bears the brunt of this burden, accounting for 53 per cent of the overall amount paid since the threshold reduction took effect. The South East follows with roughly a quarter of the total at 23 per cent.
By contrast, areas with more affordable housing stock contribute far less. The North East represents just 0.3 per cent of the stamp duty total, while the East Midlands accounts for only one per cent, with more properties in these regions remaining below the £300,000 tax-free limit.
The current stamp duty framework requires buyers in England and Northern Ireland to pay tax on properties exceeding £125,000 | GETTYIndustry experts warn that the stamp duty changes are compounding existing difficulties for those attempting to buy their first home.
"First time buyers are already facing significant challenges, from higher mortgage costs to rising rents while they save," said Colleen Babcock, property expert at Rightmove.
Nathan Emerson, chief executive of Propertymark, emphasised the growing strain on this group of buyers.
A record proportion of first-time buyers are now liable for stamp duty payments
| GETTY"These figures underline the increasing strain on first time buyers, with higher stamp duty costs adding to already significant affordability challenges," he said.
"The reduction in the threshold has not only raised upfront costs but also reduced the availability of suitable homes, particularly in higher value areas."
Research from Hamptons and Connells Group reveals that a record proportion of first-time buyers are now liable for stamp duty payments.
More than three-quarters of first-time buyers purchased properties exceeding £300,000 this year, making them subject to the tax in the country's least affordable region
| GETTY"Nearly three in 10 first-time buyers across England bought a home costing more than £300,000 this year, up from 28 per cent last year and double the proportion seen a decade ago," said Aneisha Beveridge, research director at the firm.
"Stamp duty is increasingly becoming another barrier for would-be homeowners, particularly at a time when first-time buyers are also having to save hard for a deposit amid high rents and rising living costs."
The situation is particularly acute in London, where more than three-quarters of first-time buyers purchased properties exceeding £300,000 this year, making them subject to the tax in the country's least affordable region.