Stamp Duty Soars to £13.7bn for UK Homebuyers: Outdated System Hits Contractors & First-Time Buyers

New figures reveal UK homebuyers collectively paid a staggering £13.7 billion in Stamp Duty between January and November 2025, a significant 19% jump from the previous year. This escalating tax burden, coupled with an unchanged, arguably outdated, Stamp Duty system post-Autumn Budget, presents unique challenges for UK-based individuals, including day-rate contractors, self-employed directors, and first-time buyers navigating complex financial landscapes. Understanding these impacts is crucial for anyone looking to enter or move within the property market.

According to Coventry Building Society’s analysis of HM Revenue & Customs figures, Stamp Duty payments by UK homebuyers reached £13.7 billion by November 2025. This represents a substantial 19% increase compared to the same period in 2024, when £11.5 billion was collected. A temporary dip to £1.4 billion in November, down from October’s £1.5 billion, reflected market uncertainty over potential changes ahead of the Autumn Budget, which ultimately saw no reforms to the scheme.

Jonathan Stinton of Coventry Building Society highlights that Stamp Duty remains a "hidden sting," with its thresholds unchanged since 2014, despite significant house price inflation. This disconnect disproportionately affects individuals like day-rate contractors, self-employed directors, and first-time buyers with complex financial situations, who are increasingly pushed into higher tax bands by default. For those already navigating unique mortgage challenges, this outdated system adds an unnecessary and often crippling financial burden, making homeownership less accessible and more costly in today’s market.