Research · Updated July 2026

The £250,000 wall — and the new £500,000 cliff

Tax thresholds don't just raise money; they bend prices around them. Every wall the Treasury has built is carved into the record of completed sales — including the one being built right now.

For seventeen years, crossing £250,000 by a single pound cost a buyer roughly £5,000 in extra stamp duty. So sales piled up at exactly £250,000 — 18 per 1,000 of all completions through 2005–2013 — while the £10,000 of price space just above it was a desert (5.2 per 1,000). The December 2014 reform demolished that wall almost overnight (today: 13 per 1,000). Now a new one is rising: since first-time-buyer relief began vanishing above £500,000 in April 2025, sales just below that line run at 4.1× the rate of sales just above it.

Sales at exactly £250,000, per 1,000 completions
2002
8.3
2003
11.4
2004
11.2
2005
13.4
2006
14.2
2007
15.4
2008
20.8
2009
20.4
2010
20.8
2011
21.8
2012
21.9
2013
21.7
2014
22.2
2015
11.3
2016
9.2
2017
9.2
2018
9.6
2019
10.1
2020
10.1
2021
10.4
2022
11
2023
11.7
2024
11.9
2025
12.3
2026
13
Dark bars: slab-duty era (threshold at £250,000). Green: after the December 2014 reform. The wall falls off a cliff the year the tax design changed.
The £500,000 cliff: sales per 1,000 just below vs just above
Year£496–500k£500–505k
20227.22.1
20236.62.1
20246.42.1
2025 (thresholds changed in April)72.1
20267.51.8

First-time-buyer relief applies only below £500,000 since April 2025 — crossing the line costs a first-time buyer thousands at once, and the deals visibly bunch beneath it. The same mechanics are widely reported around the proposed £2m “mansion tax” — this is what that wall will look like in the data.

Methodology & use

Counts of standard market sales at exact price points and in £4,000–£5,000 bands around each threshold, as a share of all completions that year, from the full HM Land Registry Price Paid record for England & Wales (2000 onwards). No modelling — these are raw completions. The bunching phenomenon at the old £250k notch is well documented in the economics literature (Best & Kleven, 2018); the post-April-2025 threshold measurements are ours. Free to quote and republish with attribution to Housometer and a link.

Source: HM Land Registry Price Paid Data (© Crown copyright), OGL v3.0. Analysis: Housometer, July 2026. See also how we work with data.

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