UK house prices hold at GBP 298,441. What stamp duty takes from an average home

The average UK home cost GBP 298,441 in September 2026, unchanged on the month and on the year, according to the Lloyds House Price Index published on 7 October.

A flat month after a fall

Prices had dropped 0.3% in August, and over the three months to September they were down 0.2%.

Andrew Asaam, mortgages director at Lloyds, said prices "have so far proved resilient during a period of higher mortgage rates". The Bank of England held Bank Rate at 3.75% on 17 September, and Moneyfacts reported on 5 October that the average five-year fixed rate had reached 6%.

The regional spread is wide. Lloyds' figures, reported by Sharecast on 7 October, had Northern Ireland up 7.4% on the year and Greater London down 2.2%.

For buyers in England and Northern Ireland, the headline number lands in an awkward spot. It's GBP 1,559 short of GBP 300,000, the point where first-time buyer relief from Stamp Duty Land Tax stops being a full exemption.

What stamp duty is due on an average-priced home?

The Stamp Duty Calculator in Stresst asks for the price, the nation (England & Northern Ireland, Scotland or Wales) and the buyer type. It returns the total, the effective rate and a band by band breakdown, using the SDLT bands on GOV.UK (checked 8 October).

At GBP 298,441 in England, it shows:

• First-time buyer: GBP 0
• Home mover: GBP 4,922, an effective rate of 1.65%
• Additional property, with the 5% surcharge on every band: GBP 19,844, or 6.65%

Go a little higher and the first-time buyer bill starts. At GBP 310,000 it's GBP 500, because 5% applies to the slice above GBP 300,000.

The sharper edge is at GBP 500,000. There, a first-time buyer pays GBP 10,000. One pound more and the relief goes entirely, standard rates apply to the whole price and the bill becomes GBP 15,000. For an illustrative GBP 525,000 London flat, a first-time buyer pays GBP 16,250, the same as a home mover.

Scotland and Wales have their own taxes (LBTT and LTT), which the calculator also covers. For your own tax position, speak to a qualified UK tax adviser.

Does the payment pass a stress test?

UK Affordability turns gross income into a borrowing range using an income multiple, estimates take-home pay after your monthly commitments, then tests the payment on the loan you enter. For a fix shorter than five years it adds a margin you set (at least 1%, starting at 1.5%) to the product rate. Fixes of five years or more are tested at the product rate.

Take an illustrative couple earning GBP 42,000 and GBP 30,000, on the standard high-street scheme, with GBP 2,300 a month of commitments and living costs, buying at the national average with a 10% deposit: a GBP 268,600 loan over 30 years.

• Borrowing range: GBP 288,000 to GBP 324,000
• Approximate take-home: GBP 4,906.60 a month, or GBP 2,606.60 after commitments
• Two-year fix at 5.75%: payment GBP 1,567.48. Tested at 7.25%, it's GBP 1,832.33, leaving GBP 774.27
• Five-year fix at 6%: payment GBP 1,610.39, tested at that rate, leaving GBP 996.21

Both pass. The five-year fix costs more each month but leaves more headroom, because it isn't stressed. The rates are illustrative, not offers.

The stamp duty comes on top of the deposit. Total Purchase Costs adds it to legal, survey and lender fees to show the cash needed at completion.

Run your own numbers in Stresst

The figures in this article came straight out of the Stresst app. Put in your own price, buyer type and income and you'll have the same breakdown in a couple of minutes.

The Stamp Duty Calculator and Total Purchase Costs are free, as is Mortgage Payment. UK Affordability is a Premium tool. Premium also adds the Rate Break-Even Analyser, the Section 24 calculator and PDF export on every calculator, with a 7-day free trial.

The Bank of England's next rate decision is on 5 November, so download it now and see what a change would do to your numbers before you make an offer.

Download Stresst free on Google Play

Know your numbers before you commit.

Sources

• Lloyds Bank, Lloyds House Price Index, September 2026, published 7 October 2026. https://www.lloydsbank.com/media-centre/house-price-index.html
• Sharecast, "UK house prices steady in September - Lloyds", 7 October 2026. https://www.sharecast.com/news/news-and-announcements--/uk-house-prices-steady-in-september---lloyds--23778260.html
• Bank of England, Bank Rate, checked 8 October 2026. https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate
• Moneyfacts, average five-year fixed rate hits 6%, 5 October 2026. https://moneyfactscompare.co.uk/news/mortgages/best-uk-residential-mortgage-rates-this-week/
• GOV.UK, Stamp Duty Land Tax: residential property rates, updated 30 September 2026, checked 8 October 2026. https://www.gov.uk/stamp-duty-land-tax/residential-property-rates