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Stamp duty burden falls heavily on London first-time buyers

Nearly eight in ten first-time buyers in London now pay Stamp Duty Land Tax (SDLT), compared with fewer than one in ten in the North of England, according to new research from Zoopla.

The property portal found that almost 80% of first-time buyers in the capital now incur stamp duty, reflecting the impact of higher property values following changes to the tax thresholds. In contrast, just 8% of first-time buyers in the North East and 9% in Yorkshire and the Humber are required to pay the tax.

Across England as a whole, around six in ten first-time buyers remain exempt from stamp duty, although the burden rises significantly in more expensive regions. More than half (51%) of first-time buyers in the South East pay the tax, while the proportion in the East of England stands at 41%.

The disparity is even greater for existing homeowners. Zoopla estimates that more than four in five purchasers pay stamp duty in every English region except the North East, with buyers in London paying more than three pence in tax for every pound spent on a property, compared with less than one penny in Yorkshire and the North West.

Richard Donnell, Executive Director at Zoopla, said: “The impact of stamp duty varies significantly across England because of differences in house prices. It remains a major additional cost for many buyers in southern England.”

Zoopla said the findings highlight the growing regional imbalance created by the current SDLT system, with affordability pressures falling disproportionately on buyers in higher-value markets.

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