Only 5% of Movers Escape Stamp Duty — Rightmove Urges Urgent Reform

Only a small fraction of buyers are managing to avoid stamp duty in today’s market, according to new analysis from Rightmove. The property website revealed that just 5% of movers and 40% of first-time buyers currently qualify for stamp duty exemption — sparking fresh calls for reform ahead of November’s Budget. Rightmove says the levy has become “a significant barrier for many people moving home,” urging the government to revise how the tax is applied.

Stamp duty currently applies to homes priced above £125,000 in England and Northern Ireland, with rates ranging from 2% to 12% depending on property value. For first-time buyers, purchases up to £300,000 are exempt, but beyond that threshold, costs rise sharply. Rightmove property expert Colleen Babcock said even modest changes could make a real difference: “Even changing the thresholds would be a helping hand for some, but if there was the possibility to go further, it would be a huge step forward for mobility across the property market.” The company is urging policymakers to make adjustments that would allow more homeowners and aspiring buyers to move without facing steep tax bills.

The HomeOwners Alliance has strongly supported calls to abolish stamp duty, arguing that it discourages movement and traps families in unsuitable homes. Chief executive Paula Higgins said: “Over 800,000 homeowners have shelved moving plans in the past two years — and stamp duty is a major barrier. Scrapping it could unlock supply, stimulate trades, and get the housing market moving again.” However, Hargreaves Lansdown’s Sarah Coles cautioned that stamp duty might not be the biggest cost for most movers. “Downsizers might save £5,000 on stamp duty, but estate agency fees, conveyancing, and removal costs can outweigh that. For first-time buyers, raising a deposit remains the main challenge.”