Data shows the total estimated first-time buyer stamp duty bill over the past year was £408 million, compared to £101 million the previous year.

In April 2025, the first-time buyer stamp duty threshold was lowered from £425,000 to £300,000.

Before the change 62% of homes for sale were stamp-duty free for first-time buyers and that has now dropped to 41%.

On a regional basis, the data shows that more than half of the £408 million paid by first-time buyers comes from London, with most of the rest coming from the South.

Regions further north contribute very little in stamp-duty payments, because many typical first-time buyer homes are still below the stamp duty threshold.

Rightmove has called on the government to consider a reform to stamp duty, as the latest figures show how much higher the cost is for first-time buyers.

Rightmove property expert Colleen Babcock says: “First-time buyers are already facing significant challenges, from higher mortgage costs to rising rents while they save, so it would really benefit first-time buyers if they could have a reduction in up-front moving costs.”

“Our latest figures show just how much stamp duty costs have risen for first-time buyers since the threshold fell, particularly in London and the South East, where far more homes now sit above the zero-rate limit. This reduces choice and increases the savings needed before buyers can even consider moving.”

“With the majority of first-time buyer stamp duty now coming from a small number of higher priced regions, it highlights how a single national threshold no longer reflects local housing markets.”

“A more regionally aligned approach to stamp duty could better support first-time buyers where affordability pressures are greatest, while also helping to encourage more movement across the housing ladder.”

Meanwhile, Propertymark chief executive Nathan Emerson adds: “These figures underline the increasing strain on first-time buyers, with higher stamp duty costs adding to already significant affordability challenges.”

“The reduction in the threshold has not only raised upfront costs but also reduced the availability of suitable homes, particularly in higher-value areas.”

“What agents are seeing in practice is a growing regional imbalance. Buyers in London and the South are disproportionately affected, highlighting how current national thresholds no longer reflect local market conditions.”

“Stamp duty continues to act as a barrier to entry and wider market movement and should be reviewed, including consideration of more flexible or regionally aligned thresholds, to better support first-time buyers and improve overall housing mobility.”

Also commenting, Quilter mortgage expert Karen Noye says: “Rightmove’s numbers show a housing ladder that is becoming almost impossible to climb. A 52% jump from a typical first time buyer home to a three or four bed property was already a stretch, but the latest rise in mortgage rates, driven by the escalation in the Middle East pushing oil prices higher, is making that leap even tougher. Higher funding costs feed directly into mortgage pricing, and that removes many buyers from the running before they even start.”

“Traditionally, people moved into bigger homes as their families grew. That pattern is breaking down. Buyers now need almost £24,000 of extra equity just to maintain a 20% deposit, and in regions like the South East the gap reaches 61%.”

“Many households simply cannot make the move when children arrive, which inevitably shapes decisions about family size and contributes to the UK’s broader demographic pressures.”

“The flat versus house divide is widening too. With flat prices rising only 8% over the past decade compared with 34% for houses, many owners lack the equity they expected.”

“Combined with higher mortgage rates, the numbers no longer work for a large share of would be second steppers. Until borrowing costs stabilise and the price gap narrows, this part of the market is likely to remain blocked, with consequences that extend well beyond housing.”