Stamp Duty 2026: How Much Will You Pay Under the New Rates?
Nobody warned them about the extra £6,000.
A couple I know spent months saving for their first home. They found the perfect flat in East London, negotiated a good price, and felt ready. Then their solicitor mentioned stamp duty land tax. Suddenly their carefully planned budget had a massive hole in it.
Since April 2025, the rules changed dramatically. First-time buyers used to pay nothing on properties up to £425,000. Now that threshold sits at £300,000. For anyone buying above that, the tax kicks in immediately. On a £400,000 property, you're now paying £5,000 that you wouldn't have paid before.
Standard buyers feel the squeeze even harder. The nil-rate band dropped from £250,000 to £125,000. Every pound above that threshold now attracts tax. On a £500,000 home, you're looking at roughly £15,000 in stamp duty alone.
Buy-to-let investors and second home buyers face the steepest climb. The surcharge increased from 3% to 5% on top of standard rates. A £300,000 investment property now costs £15,000 in tax before you've even picked up the keys.
The government has collected an extra £307 million from households since these changes took effect. Rightmove reports that 62% of homes used to be stamp duty free for first-time buyers. Now only 41% qualify.
If you're planning to buy this year, factor these costs into your budget from day one. Look into available first-time buyer schemes that might help offset the burden. Speak to your solicitor early. Get the exact figures before you fall in love with a property you can't actually afford.
The dream of homeownership just got more expensive. Plan accordingly.
