Stamp duty is one of those costs that catches first time buyers off guard. You’ve saved for a deposit, budgeted for solicitor fees, and then someone mentions stamp duty and the numbers shift.
Here’s where things stand for first time buyers in 2026.
Current First Time Buyer Rates
First-time buyers can benefit from SDLT relief. From 1 April 2025, eligible buyers pay no SDLT on the first £300,000 of a property purchase (up to a maximum property value of £500,000). (Source: Gov.uk)
If the property costs more than £500,000, you pay standard rates on the full amount — the first time buyer relief doesn’t apply.
For most first time buyers in the Birmingham, Solihull, and Tamworth areas, this means many properties fall entirely within the nil-rate band. A property at £280,000 means zero stamp duty. A property at £350,000 means stamp duty on the £50,000 above the threshold — £2,500.
How It’s Calculated
Stamp duty works in bands, similar to income tax. You don’t pay the higher rate on the entire purchase price — only on the portion above each threshold.
Standard rates (non-first time buyers) for reference:
- Up to £250,000: 0%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Above £1.5 million: 12%
First time buyer rates:
- Up to £300,000: 0% (on properties up to £500,000)
- £300,001 to £500,000: 5%
We calculate stamp duty as part of our affordability assessment so you know exactly what to budget. No surprises at completion.
Additional Property Surcharge
If you already own a property — even a buy-to-let or inherited share — and you’re purchasing another one, you’ll pay a 5% surcharge on top of the standard rates (increased from 3% in the October 2024 Autumn Statement).
This catches some first time buyers off guard if they’ve inherited a share of a property or own a buy-to-let. We check for this as part of our initial assessment because getting it wrong creates a nasty surprise at completion.
Planning Around Stamp Duty
If you’re purchasing near a threshold boundary, it’s worth understanding the impact. The difference between a £299,000 and a £305,000 purchase for a first time buyer is £250 in stamp duty — not a dealbreaker, but worth knowing.
Where stamp duty becomes significant is at the upper end. Properties above £500,000 lose the first time buyer relief entirely. If you’re looking in that range, the calculation changes substantially and it’s worth factoring in early.
Changes and Uncertainty
Stamp duty thresholds have changed several times in recent years. The temporary higher thresholds during 2022-2025 created a more generous regime that has now partially unwound.
Future changes are always possible — stamp duty is one of the government’s favourite levers. We stay on top of any announcements and advise clients accordingly. If you’re planning a purchase, speak to us and we’ll factor current stamp duty into your budget planning.
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We charge a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £149 to £499 and this will be discussed and agreed with you at the earliest opportunity.
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