Homebuyers paid £15.2bn in Stamp Duty Land Tax in 2025-26, up 9.2% on the previous tax year, as the nil-rate threshold reverted to £125,000.
Analysis by Coventry Building Society of HMRC figures found buyers paid £1.3bn more in Stamp Duty Land Tax than in 2024-25, when receipts totalled £13.9bn.
The increase follows the reduction in the nil-rate threshold from £250,000 to £125,000 last April, a move which the society said added £2,500 to the tax bill on an average-priced home in England.
Coventry said the lower threshold is drawing more buyers into paying the tax because house prices have risen well beyond the level seen when the £125,000 starting point was introduced in December 2014.
At that point, the average house price in England stood at £191,523. According to the latest UK House Price Index, it is now £290,001, an increase of more than £98,000.
The mutual said this means homes that would once have fallen below the starting point for Stamp Duty are now subject to a charge because of house price inflation over the past decade.
It also pointed to the Office for Budget Responsibility’s Economic and Fiscal Outlook, which shows property taxes – including Stamp Duty, devolved property taxes and the Annual Tax on Enveloped Dwellings – are forecast to reach £19.7bn this tax year and rise to £28bn by 2030.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Stamp Duty is a big chunk of money on top of an already expensive process. With house prices rising so sharply over the past decade, out-of-date thresholds are pulling far more buyers into the tax net. Homes that once sat comfortably below the starting point are now being caught simply because prices have moved on.
“With inflation now at 3.3% the cost of living remains a real pressure – many aspiring buyers are already juggling higher everyday expenses, making a hefty bill even harder to absorb. Covering the tax could mean people need to dig deeper into savings, lean on family for support, or compromise on the kind of home they want to buy.
“It makes it harder to take the next step, whether that’s upsizing, downsizing or moving when family circumstances change.
“Reforming Stamp Duty would give buyers meaningful support at a time when many are already stretched. Without change, the risk is we continue to penalise aspiration and slow down a housing market that depends on people being able to move freely.”
