UK households in homes under £293,000 could be slapped with £4,650 bill

UK households in homes under £293,000 could find their Stamp Duty bill more than double from £2,150 to £4,650. Propertymark has highlighted that the UK Government’s Autumn Budget introduced by Labour Party Chancellor Rachel Reeves, could have sizable implications for many first-time buyers and homeowners looking to move from 1 April next year.

Based on the average UK house price of £293,000, those looking to move house could find their Stamp Duty bill more than double from £2,150 to £4,650. The Stamp Duty threshold for first-time buyers has also been reduced from £425,0000 to £300,000, which will give thousands of first-time buyers an additional tax liability, which has the potential to affect affordably across some regions.

First-time buyers in London hoping to purchase an average priced house at £531,212 are set to be worst affected, having to find an additional £11,250 when the changes take effect. A lower stamp duty threshold could cost buyers potentially tens of thousands of pounds extra, again, depending on how much the property you’re buying is worth. You pay stamp duty on the portion of your property where it applies.

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Under current rules in England and Northern Ireland, you have to pay stamp duty if your property is your only residence and is worth over £250,000. This higher rate was introduced in September 2022 but is due to go back down to its previous level of £125,000 in March 2025.

If you're a first-time buyer, you currently only start to pay stamp duty if the property you're buying is worth over £425,000 - but this will go back down to £300,000. First-time buyers will be exempt up to an initial threshold of £300,000 (if the price of the property they are purchasing is below £500,000).

Nathan Emerson, CEO at Propertymark, commented: “The Autumn Budget will likely uplift the housing market over the coming months, as people potentially look to complete before any increases on Stamp Duty come into effect next April. It is however important to consider continued house price growth, even in the short to medium term, as overall pricing gains should outweigh any proposed stamp duty increases for the very highest percentage of buyers.”