Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

Stamp Duty Burden Rises for First-Time Buyers, Connells Group Finds

A record 30% of first-time buyers in England purchased homes over £300,000 in 2026, double the proportion from ten years earlier, according to analysis by Connells Group. The increase follows changes to stamp duty thresholds introduced in April 2025, which have shifted the tax burden for new homeowners.

Connells Group's data shows that prior to the reforms, only 10% of first-time buyers were purchasing above the previous £425,000 nil-rate threshold. The reduction in relief limits has particularly affected buyers in southern England, where property values often exceed the new thresholds.

Regional Impact

London remains the most affected region, with 78% of first-time buyers now purchasing above £300,000 and therefore liable for stamp duty. The average stamp duty bill for first-time buyers in the capital is £12,690. In the East of England, 40% of first-time buyers are purchasing above the threshold, while in the South East the figure is 38%.

The impact of the changes is also being felt in traditionally more affordable regions. Fourteen per cent of first-time buyers in the North West and 13% in the West Midlands now pay stamp duty on their purchases, indicating a broader spread of the tax burden across England.

Buyer Behaviour and Market Adjustments

Despite the increased tax burden, first-time buyers are securing larger discounts from sellers. Since the end of the stamp duty holiday in March 2025, asking prices for homes purchased by first-time buyers have increased by 5%, while the average price paid has risen by just 0.7%. In May 2026, first-time buyers paid an average of 96.9% of the asking price, compared with 97.9% before the stamp duty changes, resulting in an average saving of £2,690 per purchase.

More than a third of first-time buyers making offers on homes initially listed above £500,000 negotiated the agreed sale price down to £500,000 or below, allowing them to remain eligible for first-time buyer stamp duty relief. The findings suggest that stamp duty thresholds are influencing both buyer behaviour and property pricing strategies, particularly in areas where values cluster around the relief limits.

These trends are relevant for letting agents and inventory clerks monitoring market dynamics, as changes in stamp duty policy continue to shape buyer activity and property pricing across the UK.