The rise is largely due to the nil-rate thresholds falling from £250,000 back to £125,000 last April

Homebuyers paid £15.2 billion in stamp duty in the 2025/2026 tax year, up by £1.3 million compared to the previous year, Coventry Building Society’s analysis of HMRC figures reveals.

The rise is largely due to the nil-rate thresholds falling from £250,000 back to £125,000 last April.

The change meant the tax bill on an average priced home in England increased by £2,500 overnight.

The £125,000 threshold was initially introduced in December 2014, when the average UK property price in England was £191,523.

According to the latest UK house price index, the average price in England is now £290,001, which is an increase of more than £98,000.

It means many homes that sat comfortably below tax bands a decade ago now incur a charge simply because prices have jumped.

The Office for Budget Responsibility’s Economic and Fiscal Outlook shows property taxes, which includes Stamp Duty, devolved property taxes, and the Annual Tax on Enveloped Dwellings, is set to increase to an estimated £19.7 billion this tax year, and balloon to £28 billion by 2030.

Coventry Building Society head of intermediary relationships Jonathan Stinton says: Stamp Duty is a big chunk of money on top of an already expensive process. With house prices rising so sharply over the past decade, out-of-date thresholds are pulling far more buyers into the tax net.

Homes that once sat comfortably below the starting point are now being caught simply because prices have moved on, he said.

With inflation now at 3.3% the cost of living remains a real pressure – many aspiring buyers are already juggling higher everyday expenses, making a hefty bill even harder to absorb, he said.

He said: Covering the tax could mean people need to dig deeper into savings, lean on family for support, or compromise on the kind of home they want to buy. It makes it harder to take the next step, whether that’s upsizing, downsizing or moving when family circumstances change.