Homebuyers paid £995 million in stamp duty in February, an 11% increase on the £899 million paid in January.
And according to Coventry Building Society’s analysis of the latest HMRC statistics, homebuyers paid £15.4 billion in stamp duty last year – an 18% increase on the £13 billion paid in 2024. The increase is largely due to zero interest rate thresholds falling from £250,000 back to £125,000 last April.
Buyers have now paid £14 billion since the thresholds changed.
The £125,000 threshold was first introduced in December 2014, when the average UK property price was £176,561. According to the latest UK House Price Index, the average price is now £270,259 (December 2025) – an increase of over £93,000. It means that many homes that were comfortably below tax brackets a decade ago now have to pay a premium simply because prices have risen.
Commenting on the latest figures, Jonathan Stinton, head of intermediary relations at Coventry Building Society, said: “For many buyers, stamp duty has become the hidden cost of moving. Just when people think they’ve saved enough for a deposit, they realize they’re facing a tax bill that could run into the thousands.”
“The problem is that the system has not kept pace with house prices. The £125,000 threshold may have seemed appropriate a decade ago, but the average house price has risen by almost £100,000 since then – meaning more people are being pulled into a higher tax bracket by default rather than design.
Stinton added that with the Bank of England expecting to hold its base rate steady rather than cutting it this year, borrowing costs are likely to remain higher for longer. This only increased the pressure on buyers who are already young with mortgage rates and moving costs.
He concluded: “Stamp duty reform would provide meaningful support to buyers at a time when many are already under pressure. Updating the thresholds would prevent buyers being pushed into higher tax brackets and could allow more of their budget to go towards deposits and essential moving costs. It’s a practical change that would make taking the next step on the property ladder more feasible as market pressures continue to increase.”
The The Conservative Party has launched a petition demand that stamp duty on primary residences be abolished.
The issue has long been with the Conservatives under leader Kemi Badenoch, who has promised the party will take action on the tax if returned to power.