Stamp duty has long been one of the UK’s most unpopular taxes, but new analysis suggests the burden is falling far more heavily on buyers in southern England compared with other parts of the country.
Research from property website Zoopla shows that more than half of first-time buyers in the South now pay stamp duty, compared with only 4% in the North and 11% in the Midlands.
The difference is largely driven by the significant gap in property prices between regions, with southern buyers facing much larger tax bills when purchasing homes.
Southern buyers face much higher costs
The typical home mover in the South can now expect to pay around £12,000 in stamp duty, while buyers in northern regions pay an average of approximately £1,970 per transaction.
This disparity has grown as house prices have increased while stamp duty thresholds have remained largely unchanged.
Stamp duty was reformed in 2014, replacing the previous “slab” system with a more progressive structure where tax is charged only on portions of a property’s price that fall within different bands.
However, apart from a temporary adjustment following the Covid pandemic, these thresholds have remained frozen since 2017.
As property prices have continued rising, more buyers have been pushed into paying stamp duty, particularly in higher-value areas of the South.
Rising house prices increase tax pressure
Property values across southern regions, including London, the South East, the South West and the East of England, have increased significantly over the past decade.
According to Land Registry data, average house prices in these areas have risen from around £330,000 to more than £390,000.
In comparison, average prices across northern regions, including the North East, North West and Yorkshire and the Humber, have increased from approximately £135,000 to £195,000.
The result is that stamp duty has increasingly become a much larger financial burden for southern buyers.
South contributes billions in stamp duty revenue
Figures from HM Revenue & Customs show that southern households contributed around £10.6bn in stamp duty revenue between 2024 and 2025.
By comparison, northern regions paid less than £2bn during the same period.
Property experts say rapid house price growth, particularly after the pandemic, has pushed more ordinary homes above stamp duty thresholds.
Nigel Bishop from buying agency Recoco Property explained that increased demand from London buyers relocating to areas such as the South West caused prices to rise sharply.
As a result, finding a typical family home below certain price points has become increasingly difficult, leaving more buyers facing unexpected tax bills.
Stamp duty creates challenges for first-time buyers
For first-time buyers already struggling to save for deposits, stamp duty can add another significant upfront cost when purchasing a property.
Unlike mortgage payments, stamp duty must be paid as a lump sum at the point of purchase, creating an additional barrier for buyers who may have limited savings.
There is also a significant jump in costs for some buyers approaching the upper limits of available relief.
For example, a first-time buyer purchasing a property just below the £500,000 threshold may pay considerably less tax than someone buying a slightly more expensive home, creating what some experts describe as a “cliff edge” effect.
Experts call stamp duty inefficient
Some economists argue that stamp duty discourages movement within the housing market by making it more expensive for people to buy, sell or move home.
Isaac Delestre from the Institute for Fiscal Studies said the upfront nature of stamp duty can prevent people from purchasing homes even when they can afford ongoing mortgage payments.
The tax may also affect wider economic activity by making it harder for workers to move closer to better job opportunities.
Home movers also affected
The impact of stamp duty is not limited to first-time buyers.
For existing homeowners moving house, the tax threshold begins at a much lower level, meaning many buyers face significant costs even when purchasing relatively modest properties.
The £250,000 threshold for home movers has remained unchanged since 2014. Had it increased in line with house price growth, analysts estimate it would now be closer to £380,000.
Property experts argue that this has reduced the efficiency of the housing market by discouraging people from moving up or downsizing.
Lucian Cook from estate agency Savills said the tax can discourage older homeowners from downsizing because they may face a large stamp duty bill when moving.
Calls for reform continue
Growing concerns over stamp duty have led to calls for major changes or even replacing the tax entirely.
Some politicians have suggested abolishing stamp duty and introducing alternative property taxes, while others have proposed replacing it with a proportional annual charge.
Critics argue that taxing property transactions creates unnecessary barriers within the housing market and prevents people from moving when their circumstances change.
However, with stamp duty revenue expected to continue increasing in the coming years, major reform remains uncertain.
For southern buyers facing some of the UK’s highest property prices, the cost of stamp duty is likely to remain a significant challenge unless future governments choose to overhaul the system.
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