Stamp Duty for first-time buyers: What will you pay in 2026?

One of the biggest additional costs of buying a property can be Stamp Duty Land Tax — normally shortened to SDLT or simply Stamp Duty. First-time buyers buying in England can receive valuable relief, but an important change occurred on 1 April 2025, when the temporary higher thresholds ended.

The current rules therefore catch some buyers who might remember the more generous figures that applied previously. Here is the position as of August 2026.

Current first-time buyer Stamp Duty thresholds

Provided you qualify for First-Time Buyers’ Relief and the purchase price is no more than £500,000:

£0–£300,000: 0%

£300,001–£500,000: 5%

If the property’s total purchase price is more than £500,000, First-Time Buyers’ Relief is not available and the ordinary residential SDLT rates apply to the whole transaction. This £500,000 cut-off is particularly significant for London buyers.

Stamp Duty on a £300,000 property

Qualifying first-time buyer purchase price:

£300,000

The entire amount falls within the first-time-buyer nil-rate band.

Stamp Duty: £0

Stamp Duty on a £400,000 property

First £300,000:

0% = £0

Remaining £100,000:

5% = £5,000

Total SDLT: £5,000

Stamp Duty on a £450,000 property

First £300,000:

0% = £0

Remaining £150,000:

5% = £7,500

Total SDLT: £7,500

Stamp Duty on a £500,000 property

First £300,000:

0% = £0

Remaining £200,000:

5% = £10,000

Total SDLT: £10,000

What happens at £500,001?

This is where buyers need to be particularly careful. The relief doesn’t gradually taper away. If the purchase price exceeds £500,000, the transaction does not qualify for First-Time Buyers’ Relief and ordinary SDLT rates apply. That makes the £500,000 boundary commercially important when negotiating a purchase close to it.

Why this matters so much in London

The national first-time-buyer thresholds don’t change simply because London property is more expensive. ONS data illustrates the issue starkly: the provisional average price paid by a London first-time buyer in May 2026 was around £683,000, already well above the £500,000 maximum purchase price for First-Time Buyers’ Relief.

Of course that doesn’t mean the typical Curetons first-time buyer will pay that precise figure, and there are plenty of London properties below £500,000, but it does mean many London first-time buyers cannot assume they will receive special SDLT treatment simply because they have never bought before.

Who counts as a first-time buyer?

For the relief, everyone purchasing the property must satisfy the applicable first-time-buyer conditions and the property must be intended as the buyer’s main residence. HMRC’s current guidance also requires the purchase price to be no more than £500,000 for the relief to apply.

This becomes particularly important when buying jointly. Don’t assume that because you are a first-time buyer the transaction automatically qualifies. Your conveyancer should confirm your specific tax position.

What changed in April 2025?

Between 23 September 2022 and 31 March 2025, temporary higher thresholds were in force. During that period, qualifying first-time buyers paid no SDLT on the first £425,000 and relief could apply to purchases costing up to £625,000.

From 1 April 2025, the thresholds reverted to £300,000 and £500,000 respectively. This is worth stating prominently because older online articles, social-media posts and even buyers’ memories can still contain the previous figures.

Don’t choose a property purely because of Stamp Duty

Tax matters, but it is only one part of a much larger purchase. Buying an inferior property simply to remain below a threshold may be a false economy. Equally when comparing two similar options around a tax boundary, the difference in SDLT should absolutely form part of your decision. Look at the total acquisition cost rather than asking price alone.

That means considering: Purchase price, Stamp Duty, legal fees, survey costs, mortgage costs and any immediate expenditure required after completion.

Our separate First-Time Buyer Costs Guide looks at the wider picture.

Get the calculation confirmed

Stamp Duty can become complicated where circumstances aren’t straightforward, and tax rules can change. Use current HMRC guidance and have your solicitor or tax adviser confirm the amount due in your particular transaction.

Curetons can help you assess the property and price, but we don’t replace specialist legal or tax advisers.

If you’re searching for your first London property and want professional help finding, assessing and negotiating the right home, discover Curetons’ First-Time Buyer Buying Agent service.