Do First Time Buyers Pay Stamp Duty?.

Sometimes!

First-time buyers don’t automatically avoid stamp duty and whether you pay depends on the value of the property and whether you qualify for first-time buyer relief. The rules can feel confusing, especially since they’ve changed in recent years, which means many people aren’t sure what applies to them.

If you'd like clarity before budgeting or making an offer, the breakdown below explains how stamp duty works, when relief applies, and how much you may need to pay.

Note: Information was correct as of December 2025.

What is stamp duty?

Stamp duty is essentially a land tax, and more information can be found on the government website about what it is, if you want to work out how much you might pay you can use our calculator here: https://winwellfinancial.co.uk/stamp-duty-calculator-wfc

Stamp duty is tiered, meaning that depending on the price of the property and if it exceeds certain thresholds, the amount of stamp duty that you pay changes - with the actual amount being worked out based on a percentage of the total cost.

What are the Stamp duty thresholds in England?

The general rule is that stamp duty doesn’t apply to residential property purchases up to £125,000, or, for first-time buyers, on properties up to £300,000. However, it’s important to note that first-time buyer relief only applies if the total purchase price is £500,000 or less. If the price exceeds £500,000, the relief is removed entirely, and the standard stamp duty rates apply to the full amount.

This matters in areas like London, where higher average house prices mean many properties fall outside the relief threshold. The average flat price in London over the past year was over £538,000 and even flats often come with additional service charges on top of the purchase price.

Using this example, a freehold, residential first-time buyer purchase valued at £538,000 would result in a stamp duty payment of £16,900, because the property exceeds the £500,000 limit and therefore doesn’t qualify for first-time buyer relief.

Again, you can use our calculator if you want a more accurate calculation:
https://winwellfinancial.co.uk/stamp-duty-calculator-wfc
 

Your first time buyer status

While it might sound strange when you know that you’ve never bought a home before, there are circumstances where your status as a first-time buyer might come under scrutiny.

One of these is being a joint buyer, where if the person that you’re buying the property with is not a first-time buyer, then the first-time buyer relief will no longer apply. Another discount route can be found through new-build incentives, where if you meet certain criteria (such as earning less than £90,000 in London), first-time buyers can get a discount on certain new-build homes.

If you’re not sure about whether any of this applies to you or how much stamp duty you’ll have to pay, speak to our experienced team at Winwell Financial before making an offer on a property so that you can be sure you’re within your budget.