Yorkshire Building Society research puts stamp duty at the centre of a £66 billion housing market problem
New research from Yorkshire Building Society reveals stamp duty is deterring millions from moving, suppressing transactions and costing the economy billions.
The average time between home moves has stretched to 21 years. That’s more than double the nine-year average of the late 1980s, according to Yorkshire Building Society research published in July 2026. Annual transactions have more than halved from a peak of 1.5 to 1.8 million in the early 2000s to between one million and 1.2 million today.
The research was conducted by Public First and surveyed more than 4,000 UK adults between 30 March and 15 April 2026. Among first-time buyers, 23% identify stamp duty as a direct personal barrier. That proportion rises to 31% for second-steppers and 35% for those looking to downsize.
For brokers, these numbers carry a direct client implication. The charge is not always front of mind when buyers begin exploring options. Its total cost – particularly for those further up the chain – can catch clients off guard.
What stamp duty costs at each stage
Among downsizers, half say lowering property taxes should be a government priority. This reflects a wider trend, with more homeowners eyeing downsizing amid housing pressures than at any point in recent years.
Second-steppers face a sharper bill than first-time buyers. A client buying at £400,000 who already owns a property pays 5% on the portion above £250,000. That is a £7,500 charge before any other moving costs.
Stamp duty (Stamp Duty Land Tax) rates for a single residential property — applicable where the property will be the purchaser’s sole residential holding. Rates as at September 2026.
| Purchase price (or lease premium) | Stamp Duty Land Tax rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
* Clients who already own a residential property pay an additional 5% surcharge on top of all bands above. Source: GOV.UK
Yorkshire Building Society calculates that each home sale creates around £27,000 in gross value added. This figure climbs to £66,000 once the full chain of related activity is accounted for.
“When fewer people move, the effects are felt right across the housing market,” said Tom Simpson, managing director of homes at Yorkshire Building Society. “It becomes harder for first-time buyers to find suitable homes, families can struggle to move as their needs change, and the wider economy misses out on valuable revenue.
“That’s why we believe the case for reforming Stamp Duty is becoming increasingly difficult to ignore.”
How brokers can help clients plan for the stamp duty charge
Brokers advising movers can do more than flag the bill; they can help clients factor it in from the outset.
A client who has not budgeted for the charge may find that it erodes their deposit. That affects their loan-to-value ratio and the rates available to them. Brokers can help clients build a full picture of moving costs – including legal fees, surveys and the tax itself – before they commit.
They can also identify those who qualify for first-time buyer relief, or who might benefit from timing a transaction around announced threshold changes.
The Housing, Communities and Local Government (HCLG) Committee called in June 2026 for a formal government consultation on reform before the end of the year. It argued the current system suppresses mobility across all buyer segments. For clients on the fence about moving, the prospect of reform is a conversation brokers are well placed to open.
What would stamp duty reform mean for the UK economy?
Yorkshire Building Society estimates that restoring annual transactions to early-2000s levels could generate a further £66 billion in gross value added over five years. That would require roughly 500,000 additional deals per year. Each transaction also produces around £14,000 in tax revenue through stamp duty, corporation tax and VAT. These figures are based on hypothetical modelling included in the research.
Transactions across the housing market added almost £28 billion to the UK economy in 2025. Public First projects that figure will reach £157 billion over the next five years. Up to £80 billion of that is forecast to flow to the Exchequer in tax revenue.
Simpson said stamp duty should be replaced with a fairer charge, one that stops penalising people every time they move. He argued the benefits of reform would extend beyond government revenue, reaching the clients whom brokers serve at every stage of the housing ladder.
For brokers, the clearest near-term action is simple: raise the issue of stamp duty before clients commit to a price. Left too late, the bill can shape their options before the conversation has even started.
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