According to analysis by Coventry Building Society, UK homebuyers paid a staggering £6.6 billion in Stamp Duty Land Tax (SDLT) in the first half of 2025 – a 21% increase compared to the £5.4 billion paid in the same period in 2024, based on the latest HMRC statistics.
In June alone, Stamp Duty receipts hit £1.1 billion, a 15% increase from May’s £918 million.
This sharp rise in tax receipts comes on the back of Stamp Duty thresholds being reduced in April, when the nil-rate band dropped from £250,000 to £125,000, effectively reintroducing SDLT for many more homebuyers. For an average-priced property, this change has added £2,500 to the bill – taking the average SDLT liability from £1,816 to £4,316.
Our Perspective: A Balancing Act for Buyers
At Signature Mortgages and Protection, we’re seeing firsthand how rising transaction costs, especially Stamp Duty, are impacting clients across the spectrum, from first-time buyers to seasoned portfolio landlords.
While the government has made promising moves recently, including making the Mortgage Guarantee Scheme permanent and adjusting affordability criteria such as loan-to-income limits and stress testing rules, these initiatives may be somewhat undermined by the resurgence in Stamp Duty costs.
We believe the reintroduction of the lower nil-rate band, without a phased transition or meaningful reform, risks pushing homeownership further out of reach. Not only does this place additional strain on buyers already juggling deposit demands, moving costs, and legal fees, but it also threatens to stall wider market activity. The so-called “property ladder” doesn’t work if the first few rungs are broken, or too expensive to step on.
Reform Should Be on the Radar
Jonathan Stinton, Head of Intermediary Relationships at Coventry Building Society, summed it up well:
“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… If the government really wants to support people at every stage of the journey, reforming Stamp Duty should be next on the list.”
We couldn’t agree more.
At Signature Mortgages and Protection, we advocate for a balanced, long-term approach to housing and finance policy. One that recognises the role of Stamp Duty not just as a revenue tool, but as a powerful market influencer.
We’d welcome a broader discussion on how tax policy, mortgage accessibility, and housing supply can work in tandem to create a healthier, more dynamic housing market for everyone, not just first-time buyers, but investors, developers, and those looking to move home too.
Source: Coventry Building Society analysis of HMRC Stamp Duty data, July 2025
