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  • First-Time Buyer

05 June 26

5 min read

Stamp Duty in 2026: What First-Time Buyers Actually Pay

Stamp Duty Land Tax has been adjusted twice in the last three years, and the current thresholds — in place since April 2025 — are the ones you need to plan around. This article sets out exactly what first-time buyers in England pay, where the relief applies, and how to use our calculator to model your specific purchase.

1

The standard SDLT bands from April 2025

The standard residential SDLT rates in England from April 2025 are: 0% on the first £125,000; 2% on £125,001 to £250,000; 5% on £250,001 to £925,000; 10% on £925,001 to £1.5 million; 12% above £1.5 million. These replaced the temporary higher thresholds introduced during the COVID era, which expired at the end of March 2025.

The shift back to the £125,000 nil-rate band (from £250,000 under the temporary relief) adds a meaningful cost for buyers in the £125,000–£250,000 price range — particularly in the Midlands and North of England where more transactions fall in that bracket.

2

First-time buyer relief: the current rules

First-time buyers benefit from enhanced SDLT relief, but the rules changed in April 2025. Currently, first-time buyers pay no SDLT on the first £300,000 of a property costing up to £500,000, and then 5% on the portion between £300,000 and £500,000. If the property costs more than £500,000, the standard rates apply in full — there is no partial relief.

On a £400,000 purchase, a first-time buyer pays: 0% on the first £300,000 (£0) and 5% on £100,000 (£5,000) — total £5,000. A non-first-time buyer buying the same property pays: 0% on £125,000, 2% on £125,000, and 5% on £150,000 — total £10,000. The saving is £5,000.
On a £500,000 purchase, the first-time buyer saves £5,000 compared to a standard buyer. Above £500,000, the relief disappears entirely.

3

Who qualifies as a first-time buyer?

To qualify for first-time buyer relief, every purchaser named on the mortgage must be buying their first residential property. If you are buying jointly with a partner who has previously owned a property — even one they no longer own — neither of you qualifies for the relief.

Properties inherited, received as gifts, or purchased abroad can complicate the position. If you have any doubt about whether you qualify, your solicitor should confirm this before you exchange contracts — a misapplication of SDLT relief can result in penalties and interest from HMRC.

4

Planning around the £500,000 threshold

The cliff-edge at £500,000 — where a £1 increase in purchase price costs a first-time buyer approximately £5,000 in additional SDLT — is one of the more unusual features of the current relief structure. In practice, buyers should be aware of this when negotiating around the £500,000 price point.

A property listed at £510,000 where the seller accepts £499,999 saves the first-time buyer around £5,000 in SDLT — a reduction that many sellers in a motivated position will accept, since the buyer can use the saving to support their offer or reduce their deposit requirement.
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