Stamp duty split leaves first-time buyers facing a postcode lottery

The cost of buying a first home now varies significantly depending on where it is located, with new analysis from Zoopla highlighting a growing regional divide in stamp duty liabilities.

The research, based on homebuyer enquiries across England during the first half of 2026, shows that stamp duty has become a significantly greater barrier for first-time buyers in southern England than in the North, reflecting the wide gap in property values across the country.

While first-time buyers benefit from stamp duty relief on purchases up to £300,000, the analysis found that only 38% of first-time buyers nationally pay the tax, meaning almost two-thirds complete without a stamp duty bill.

However, the picture differs markedly by region. In the North East, just 2.1% of first-time buyers are expected to pay stamp duty, rising to 3.8% in Yorkshire and the Humber, 6.2% in the North West and 9.3% in the West Midlands. In each case, average purchase prices remain comfortably below the £300,000 relief threshold.

By contrast, more than half of first-time buyers in the South East (51%) and East of England (52%) face a stamp duty bill. In both regions, the average purchase price for homes attracting stamp duty is close to £400,000.

London buyers face the highest costs. Almost four in five (79.7%) first-time buyers are liable for stamp duty, with the average purchase price reaching £475,000. The average tax bill stands at £8,750, adding a substantial upfront cost that must be funded alongside the deposit when completing a purchase.

Zoopla said the findings underline how stamp duty now has a very different impact across England, with regional house price disparities increasingly determining whether buyers face an additional tax burden.

Stamp Duty Costs and Payment Rates by Region

Note: Stamp duty bill figures are median averages for buyers who pay stamp duty based on the homes they were looking to buy in H1 2026. FTBs below £300,000 pay nothing and are excluded from the median bill calculation. Rates shown as pence paid per £1 of the median purchase price for those who pay.

Richard Donnell, executive director at Zoopla, commented: “Where you’re buying determines what you pay in stamp duty if you’re a first-time buyer. In the North and Midlands, the £300,000 takes nine in ten first-time buyers out of paying anything extra to buy their home. In London and the South East, the cost of buying an average first time buyer homes is above £300,000 for many buyers which means the majority of first-time buyers face a stamp duty bill on top of an often sizable deposit.”

The picture is markedly different for existing homeowners. Unlike first-time buyers, those purchasing their next home do not benefit from stamp duty relief, meaning the vast majority face a tax bill when they move.

Zoopla’s analysis shows that more than four in five home movers pay stamp duty in every English region except the North East, where 63.5% incur the tax.

The size of the bill also varies considerably by region. In Yorkshire and the North West, the average stamp duty bill for home movers is around £2,200, representing less than 1% of the purchase price.

In southern England, however, the cost rises sharply. In the South East, 95% of home movers pay stamp duty, with an average bill of £11,250. In London, where the median asking price for a home mover is £600,000, the average tax bill reaches £20,000.

Donnell added: “For home movers, stamp duty is a near-certain cost wherever you live – and in Southern England it runs to five figures. Six in ten property purchases are made by existing homeowners. When the cost of moving becomes a meaningful friction, some of those moves don’t happen, especially with lower levels of house price inflation in recent years across southern England.”

Zoopla said these higher costs risk discouraging homeowners from moving, reducing the number of larger homes coming onto the market while also limiting the supply of properties available to first-time buyers.

The portal also points to the impact of so-called fiscal drag, arguing that stamp duty thresholds have failed to keep pace with house price growth. The £250,000 threshold at which the 5% rate applies to home movers was introduced in 2014 and has remained unchanged.

According to Zoopla, if the threshold had increased in line with house prices, it would now stand at around £380,000. That would reduce stamp duty bills by as much as £6,500 for buyers purchasing homes priced between £250,000 and £380,000.