Planning on buying a new build as your first home?
Whatever stage you’re at, one question comes up time after time: Is there stamp duty on new builds? And as a property developer, we know the answer is ‘Yes!’
While buying a new build property is an exciting time, you shouldn’t overlook stamp duty as it can be one of the most significant expenses, sometimes amounting to tens of thousands of pounds, depending on the property price.
In this comprehensive guide, we explain what stamp duty is, how it applies to new builds, and exactly how much you can expect to pay, giving you a clearer idea of the costs before you make an offer!
Jump to:
- What is stamp duty?
- How does stamp duty work for new builds?
- Stamp duty rates for residential properties
- Stamp duty rates for first-time buyers
- High-quality new builds at Eaton Homes
- FAQs
What is stamp duty?
Stamp Duty Land Tax (SDLT), more commonly known as just stamp duty, is a type of tax applied when you purchase a property or piece of land above a certain price threshold in England or Northern Ireland.
How does stamp duty work for new builds?
SDLT for new build properties is calculated in the same way as older homes.
The main factors that impact how much stamp duty you pay for a new build is the property purchase price, your buyer status (for example, if you’re a first-time buyer), and whether you own other properties.
Stamp duty rates for residential properties
If, after buying the property, it is the only residential property you own, then you’ll be required to pay SDLT at the following rates:
| Property or lease premium or transfer value | SDLT rate |
| Up to £125,000 | 0% |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
For example, if you purchase a new build property in January 2026 for £275,000, you will need to pay the following stamp duty:
- 0% on the first £125,000 = £0
- 2% on the second £125,000 = £2,500
- 5% on the final £25,000 = £1,250
This makes a SDLT total of = £3,750
However, if you own another residential property, you’ll typically be required to pay higher rates – which is 5% on top of these standard SDLT rates:
| Property or lease premium or transfer value | SDLT rate |
| Up to £125,000 | 5% |
| The next £125,000 (the portion from £125,001 to £250,000) | 7% |
| The next £675,000 (the portion from £250,001 to £925,000) | 10% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 15% |
| The remaining amount (the portion above £1.5 million) | 17% |
For example, if you purchase the same new build property in January 2026 for £275,000, you will need to pay the following stamp duty:
- 5% on the first £125,000 = £6,250
- 7% on the second £125,000 = £8,750
- 10% on the remaining £25,000 = £2,500
This makes a SDLT total of = £17,500
(NB. These figures were accurate at the time of writing in January 2026)
Stamp duty rates for first-time buyers
If you’re a first-time buyer (regardless of whether you purchase a new build or older property), you can benefit from a SDLT discount, known as a relief.
This results in the following SDLT rates for first-time buyers:
| Property or lease premium or transfer value | SDLT rate |
| Up to £300,000 | 0% |
| The next £200,000 (the portion from £300,001 to £500,000) | 5% |
| Over £500,000 | SDLT relief cannot be claimed – standard rates apply |
Using the same example above (of a £275,000 new build purchased in January 2026), you will need to pay the following stamp duty as a first-time buyer:
0% on the first £300,000 = £0
This makes a SDLT total of = £0
As a result, for the same new build property, you’ll be paying a vastly different amount of SDLT depending on whether:
- You do not own another residential property: £3,750
- You do own another residential property: £17,500
- You’re a first-time buyer: £0
High-quality new builds at Eaton Homes
On the lookout for a new build property to call your own? Nestled in the idyllic Cheshire countryside, why not explore our most recent new build development in Beeston?
Featuring a wide range of high-quality new builds varying in both size and layout, this development offers something for everyone! Whether you’re searching for a new build with countryside views, cosy cafés down the road, or nearby castle ruins, you’ll find exactly what you’re looking for here.
To book a viewing today, please don’t hesitate to contact the friendly Eaton Homes team! You can get in touch by either:
Calling us on: 01829 824044
Or, emailing your enquiry to: info@eatonhomes.co.uk
FAQs
Do you pay stamp duty on a new build?
Yes, you will be required to pay stamp duty on a new build property in England and Northern Ireland if the sale price is over £125,000 – unless you’re a first-time buyer.
Do first-time buyers pay stamp duty on a new build?
Yes, first-time buyers will be required to pay stamp duty on a new build property in England and Northern Ireland if the sale price is over £300,000.
How much is stamp duty on a new build?
Exactly how much stamp duty you need to pay for a new build will vary depending on a range of factors. This includes the property purchase price, your buyer status, and whether you own other properties.
When do you pay stamp duty on a new build?
Stamp duty is payable on a new build within 14 days of completion.
Working out the numbers? calculate your costs with our mortgage calculator or see our full home buying hub.
