Stamp Duty receipts climb to £899m in subdued January market

Homebuyers handed over £899m in Stamp Duty Land Tax in January, despite the traditionally quieter start to the year for transactions.

Analysis of the latest HMRC figures by Coventry Building Society shows receipts were up 6% on the £848m collected in January last year, underlining the continued tax burden facing purchasers even as activity typically softens following the festive period.

January is often a slower month for completions, with many buyers opting to avoid moving over Christmas. With transaction volumes usually easing at the start of the year, Stamp Duty revenues tend to dip. However, this January still generated close to £900m for the Treasury.

THRESHOLD CHANGES DRIVING RECEIPTS

Over the past year as a whole, homebuyers paid £15.4bn in Stamp Duty, an 18% rise on the £13bn recorded in 2024. The increase follows the reduction in the nil-rate threshold from £250,000 back to £125,000 last April, bringing a greater proportion of transactions into the tax net.

The £125,000 starting point was first introduced in December 2014, when the average UK property price stood at £176,561. According to the latest UK House Price Index, the average price reached £270,259 in December 2025, an increase of more than £93,000 over the period.

The shift in values means that properties which once sat comfortably below the entry threshold now attract Stamp Duty purely as a result of house price growth, rather than any material change in the type or size of home being purchased.

“If Stamp Duty has any chance of being considered fair and proportionate, it has to reflect today’s market”

Jonathan Stinton, head of mortgage relations at Coventry Building Society, said: “Stamp Duty is one of those costs that really hits home because buyers have to find the money upfront – on top of their deposit and moving costs.

Jonathan Stinton, Head of Intermediary Relationships at Coventry Building Society — Jonathan Stinton

“While January is usually a quieter month for completions, it’s striking that buyers still handed over such a significant sum to the Treasury.

“Over the past year, we’ve seen how changes to the nil-rate threshold have pushed more ordinary home purchases into paying tax.

“The £125,000 starting point might have made sense back in 2014, but house prices have moved on dramatically since then.

“As a result many buyers are now paying Stamp Duty simply because property values have risen, not because they’re buying larger homes.

“If Stamp Duty has any chance of being considered fair and proportionate, it has to reflect today’s market.

“We have seen the government make sudden changes in direction on policies and this would be a welcome one. An urgent refresh of the thresholds would bring the system back in line with reality and take some of the pressure off people trying to move.”