The thousands of pounds paid out in stamp duty by some first-time buyers, despite being able to claim discounts, have been outlined by HM Revenue and Customs (HMRC).
The details were disclosed following a freedom of information (FOI) request made on behalf of money app Plum, which looked at stamp duty payments by people qualifying for first-time buyers’ relief in 2024-25.
It found that the average amount of stamp duty paid by first-time buyer relief claimants who had liable transactions in the year 2024-25 was £4,073.
From April 2025, stamp duty discounts have became less generous for some home buyers.
Among last year’s changes, the “nil rate” stamp duty threshold for first-time buyers decreased from its temporary level of £425,000 to £300,000. Stamp duty applies in England and Northern Ireland.
HMRC said its figures specifically capture claimants of first-time buyers’ relief and it does not collect information on all first-time buyers.
As the nil rate band for first-time buyers was previously £425,000, most first-time buyer relief claimants in the year 2024-25 with a stamp duty liability would have bought a home for more than £425,000.
HMRC counted more than 13,000 first-time buyers’ relief claimants where the tax paid was £5,000 or more.
Under the current stamp duty rules for first-time buyers, if someone is buying a first home for over £500,000, standard stamp duty charges apply. This replaced the previous limit of £625,000 in April 2025.
Rajan Lakhani, a personal finance expert at Plum, said the new, lower stamp duty thresholds will mean tax bills grow bigger.
He said: “Stamp duty has long been one of the most hated taxes there is, but the pain faced by first-time buyers is particularly acute given the financial challenges they already face in raising a deposit.”
Mr Lakhani said that Lifetime Isas (Lisas), which come with a government bonus, may help some first-time buyers’ budgets. The accounts add a 25% bonus to savings, up to a maximum of £1,000 per year.
He said: “For example, there were 12,000 first-time buyer transactions last year (in HMRC’s figures) where relief claimants had stamp duty of less than £2,000.
“That could have been covered with the free money that comes from two years of maxing out the annual Lisa allowance.”
The Government has said it will consult on introducing a new, first-time buyer only savings product that will provide a bonus when someone uses it to buy a house.
It has also said that it will remain possible to open a Lifetime Isa until the new product becomes available, and for account holders to continue to save into their Lifetime Isa.
Aneisha Beveridge, research director at Connells Group, said: “Saving for a deposit is often still the biggest mountain most first-time buyers have to climb – but for a growing number, the stamp duty bill waiting at the top is adding to the strain.
“Across Connells Group, around one in four (26%) first-time buyers bought a home over £300,000 last year, putting them into stamp duty territory.
“Back in 2017, when the £300,000 nil-rate band was first introduced, it was closer to one in seven.
“But the picture really depends on where you live.
“In London, where the average first-time buyer spends around £440,000, three-quarters (77%) are now buying above the threshold.
“For many, that means finding an extra £7,000 for stamp duty – roughly the equivalent of just over three months’ rent in the capital – on top of an already chunky deposit.
“Even so, the market has felt somewhat kinder in recent months.
“Mortgage rates have been drifting down and wage growth has held up, which has helped more new buyers take the leap.”
