27 February 2026 5 min read

Stamp Duty for First-Time Buyers in 2026: What Changed and What You’ll Pay

If you’re a first-time buyer in 2026, stamp duty is now a bigger upfront cost than it was a year ago. The temporary nil-rate threshold for first-time buyers dropped from £425,000 back to £300,000 in April 2025, and the maximum purchase price for FTB relief fell from £625,000 to £500,000. Here’s exactly what it means for your purchase.

First-time buyer stamp duty 2026

What changed in April 2025?

During the cost-of-living support period, first-time buyers paid zero stamp duty on the first £425,000 of a property purchase (up to a maximum price of £625,000). Those thresholds have now reverted:

Before April 2025 Now (2025/26)
FTB nil-rate threshold £425,000 £300,000
Max purchase price for FTB relief £625,000 £500,000
Rate above threshold 5% 5%

What first-time buyers now pay: worked examples

Here's the stamp duty bill on popular purchase prices, compared to what you would have paid before April 2025:

£300,000 property:

  • Stamp duty: £0 (still within the nil-rate band)
  • Previously: £0 — no change at this price

£350,000 property:

  • Stamp duty: £2,500 (5% on £50,000 above the £300k threshold)
  • Previously: £0 — you now pay £2,500 more

£400,000 property:

  • Stamp duty: £5,000 (5% on £100,000 above the £300k threshold)
  • Previously: £0 — you now pay £5,000 more

£450,000 property:

  • Stamp duty: £7,500 (5% on £150,000 above the £300k threshold)
  • Previously: £1,250 — you now pay £6,250 more

£500,000 property:

  • Stamp duty: £10,000 (5% on £200,000 above the £300k threshold)
  • Previously: £3,750 — you now pay £6,250 more

Impact on your total buying costs

For a first-time buyer purchasing a £350,000 home with a 10% deposit (£35,000), the stamp duty adds another £2,500 to your upfront costs. Combined with legal fees (~£1,500) and survey costs (~£500), you're looking at roughly £39,500 needed before you even get the keys.

On a £315,000 mortgage at 4.5% over 25 years, your monthly repayment would be approximately £1,752. You'd need a household income of around £50,000 to comfortably afford this.

How to reduce the hit

  • Buy at or below £300,000: You'll still pay zero stamp duty as a first-time buyer
  • Negotiate with the seller: In a buyer's market, sellers may accept a lower price to account for the stamp duty increase
  • Consider shared ownership: You only pay stamp duty on your share of the property
  • Use a Lifetime ISA: The 25% government bonus (up to £1,000/year) can help offset the stamp duty cost

Calculate your exact stamp duty: Use our Stamp Duty Calculator to see the exact cost for your purchase price, or try our Mortgage Affordability Calculator to check what you can borrow.