Homebuyers paid £15.2billion in Stamp Duty in 2025 to 2026, up £1.3billion – or 9.2% – on the previous year, as more buyers were drawn into the tax following last year’s threshold changes.

Coventry Building Society, which analysed HMRC data, says the increase is the result of the nil-rate threshold reverting from £250,000 to £125,000 in April and pushing up costs for buyers.

Expensive process

Jonathan Stinton (pictured), Head of Intermediary Relationships at Coventry Building Society, said: “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 With house prices rising so sharply over the past decade, out-of-date thresholds are pulling far more buyers into the tax net.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.”

The lender says the shift has made it harder for buyers to manage upfront costs.

Many aspiring buyers are already juggling higher everyday expenses, making a hefty bill even harder to absorb.”

Stinton adds: “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.

“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.”

He is now calling for change, saying: “Reforming Stamp Duty would give buyers meaningful support at a time when many are already stretched. Without change, the risk is we continue to penalise aspiration and slow down a housing market that depends on people being able to move freely.”