Homebuyers handed £899 million to the Treasury in Stamp Duty Land Tax during January alone, according to HMRC data analysed by Coventry Building Society. The figure marks a 6 percent increase on the £848 million collected in January 2025.
Over the full calendar year, stamp duty receipts totalled £15.4 billion – an 18 percent surge from £13 billion the previous year. The sharp rise follows the reduction in the nil-rate threshold from £250,000 back to £125,000 last April, which dragged more transactions into the tax net.
Threshold no longer reflects market reality
The £125,000 starting point was first introduced in December 2014, when the average UK property price stood at £176,561. According to the latest UK House Price Index, the average price reached £270,259 in December 2025 – an increase of more than £93,000.
For landlords and buy-to-let investors, the impact is compounded by the 5 percent surcharge on additional property purchases introduced in 2016 and raised to 5 percent last year. An investor purchasing a £300,000 rental property now faces an SDLT bill of £17,500 – a significant upfront cost that affects investment calculations from day one.
Calls for urgent reform intensify
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said the system needed an “urgent refresh” to bring it back in line with current market conditions.
“Stamp Duty is one of those costs that really hits home because buyers have to find the money upfront – on top of their deposit and moving costs,” Stinton said. “While January is usually a quieter month for completions, it’s striking that buyers still handed over such a significant sum to the Treasury.”
He added: “The £125,000 starting point might have made sense back in 2014, but house prices have moved on dramatically since then. Many buyers are now paying Stamp Duty simply because property values have risen, not because they’re buying larger homes.”
Political momentum for change
Conservative leader Kemi Badenoch has emerged as the most prominent advocate for stamp duty abolition, unveiling the proposal at her party conference speech in October. She argued scrapping the tax would help “achieve the dream of home ownership for millions” and “unlock a fairer and more aspirational society.” The policy has gained backing within the Conservative Party and attracted support from industry bodies calling for reform.
However, with the Treasury now collecting over £15 billion annually from stamp duty alone, any government faces a substantial fiscal gap to fill if reform is to progress.
Editor’s view
The numbers tell a simple story: a threshold frozen for over a decade while house prices surged has quietly turned stamp duty into a stealth tax on mobility. For landlords already squeezed by higher surcharges and tighter mortgage interest relief, every additional transaction cost erodes the case for remaining in the market.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 23 February 2026
Sources: HMRC, Coventry Building Society
Related reading: Wealthy investors return to buy-to-let despite stamp duty rise
