Stamp duty reform needed to help first-time buyers afford homes, say MPs

Aneisha Beveridge, research director at Connells Group, said: “Stamp duty is fast becoming one of the key hurdles facing first-time buyers, adding thousands to the upfront cost of getting onto the housing ladder. As thresholds have been eroded by inflation, a growing share of buyers are being pulled into paying tax far earlier in their home-buying journey.

“Today, nearly a third of first-time buyers in England (30 per cent) are purchasing above £300,000 and facing a stamp duty bill – up from just 10 per cent who were above the previous threshold at the start of 2025.

“In London, the picture is even more acute, with almost four in five (78 per cent) first-time buyers now paying stamp duty. This is cash that buyers can’t borrow, and in many cases, it comes out of their deposit.

“While some buyers have been able to use weaker market conditions to negotiate and minimise their tax bill, the system is widely influencing behaviour – from how much people offer, to the type of home they buy, and how long they plan to stay.

“Against a backdrop of stretched affordability, these upfront costs risk becoming an increasing barrier to entry, particularly for those without access to family support. And they’re known for distorting house prices and discouraging mobility.

“Any review of stamp duty is an opportunity to think carefully about how the system can better support first-time buyers, particularly those in more expensive markets.”