If you’re a first-time buyer, don’t despair completely—the government hasn’t forgotten you entirely. You still get relief on the first £300,000 of a purchase (up to £425,000 for the full relief). So if you’re buying a £300,001 flat, you pay 5% on that single pound. No, really. It’s a weird quirk.
Stamp Duty Rates in 2026 - Property Investor Today
But here’s the rub: in 2026, the average first home in London is still over £500,000. That means you’re paying 5% on the chunk between £300,000 and £500,000, plus 10% on anything above that up to £625,000. It’s progress, but it feels like a cruel math joke.
My advice? If you’re a first-timer, look for a property just under the £425,000 threshold. Seriously, haggle like your life depends on it. You’ll save thousands in tax that would otherwise vanish into the Treasury’s pocket.
The "Non-Resident" Trap (Don't Ignore This)
Oh, and if you’re reading this from abroad? The taxman really wants your attention. Non-UK residents already pay a 2% surcharge on top of everything. So on a £500,000 house, you’re looking at rates starting at 5% and climbing. It’s a deterrent, plain and simple, designed to stop overseas cash flooding into our housing market.
But here’s the irony: it mainly hurts Brits moving back home after a few years working overseas. You’d think "returning to your homeland" would get a discount. Nope. Thanks, HMRC.
