Rightmove Calls on Government to Rethink Outdated Stamp Duty Thresholds

The UK’s largest property portal, Rightmove, has renewed calls for a much-needed reform of stamp duty thresholds, urging the government to take action to support first-time buyers and ease the pressure on those struggling to access the housing market.

This follows the reversion of stamp duty thresholds on 1 April 2025 in England and Northern Ireland, when temporary measures introduced to ease buyer burden during the economic turbulence of recent years came to an end. As a result, first-time buyers now pay stamp duty on properties priced above £300,000, a drop from the previous £425,000 threshold introduced during the temporary relief period.

For context, the £300,000 first-time buyer threshold was first introduced in 2017, and the basic £125,000 limit for other buyers hasn’t changed since 2006. Despite soaring house prices across the country, particularly in our core regions of Essex and Suffolk—these bands remain frozen in time.

Why Reform Is Needed Now

According to Rightmove, house prices in England have increased by 22% between 2017 and 2025. However, the stamp duty thresholds have failed to keep pace. Back in 2017, approximately 53% of homes on the market were exempt from stamp duty for first-time buyers. Today, that figure has fallen to just 40%.

This decline reflects not only the impact of inflation but the growing difficulty for new buyers to find affordable homes that don’t trigger additional taxes. Rightmove argues that without urgent reforms, more buyers will be forced into higher-risk mortgages or will be shut out of the market altogether.

A Barrier to First-Time Buyers and Movers Alike

Johan Svanstrom, CEO of Rightmove, highlighted the wider implications in an interview with the Financial Times, stating:

“Stamp duty can be a big barrier to movement, and so we want to see ways that affordability can be improved and more first-time buyers can be supported onto the housing ladder.”

This affordability squeeze is already having a tangible effect. Research by fintech firm Twenty7tec shows that almost 50% of first-time buyers are now taking out mortgages at 90% loan-to-value or higher, meaning higher monthly repayments and increased financial vulnerability.

The Hidden Impact on Downsizers and Housing Supply

The case for reform isn’t limited to those entering the market. A separate study by national estate agency Jackson-Stops has underlined how stamp duty is also disincentivising older homeowners from downsizing.

Their research shows that 22% of homeowners aged over 55 have no intention of downsizing, with many citing stamp duty as a key deterrent. Among those open to moving, 15% said they would act within the next year if stamp duty were reduced or scrapped on their onward purchase. This represents a potential release of over 500,000 homes back into circulation, vital stock that could reinvigorate housing chains and stimulate economic activity across regions like ours.

What This Means for Buyers in Essex and Suffolk

At Boydens, we’ve seen first-hand how stamp duty changes influence market behaviour. In growing areas such as Colchester, Chelmsford, and Frinton-on-Sea, rising property prices increasingly push even modest homes above tax thresholds. This adds an extra financial hurdle, especially for buyers trying to secure their first home or older homeowners considering a move to something more manageable.

A revision of stamp duty bands, better aligned with current house prices, could support mobility in the market and make a real difference to buyers and sellers alike. It would encourage activity not only at the entry level but also further up the property ladder, helping to unlock stalled chains and meet housing demand in our thriving communities.

Stay Informed, Move Smart

Boydens will continue to monitor developments in the property market and provide our clients with clear, expert guidance. If you're unsure how current or future stamp duty changes could affect your plans, whether you’re buying, selling, or downsizing, our local teams are here to help.

📞 Get in touch with your local Boydens branch today for a no-obligation chat with one of our experienced advisors.