Mortgage completions soared by 50 per cent in March — the sharpest monthly rise in more than three years — as homebuyers raced to complete purchases ahead of changes to stamp duty thresholds.
According to an analysis of Barclays lending data, first-time buyer activity surged even more dramatically, with completions jumping by 70 per cent compared to February. The rush came ahead of the April 1 deadline, after which the stamp duty exemption for first-time buyers in England and Northern Ireland was reduced from £425,000 to £300,000. For other buyers, the threshold at which stamp duty applies was halved, from £250,000 to £125,000.
Jatin Patel, head of mortgages, savings and insurance at Barclays, described March as a “blockbuster month” for completions. However, he also warned that sentiment was shifting: “For existing homeowners and renters the shift in sentiment reflects the cautiousness felt across the economy as a whole, as consumers are concerned about rising bills and the prospect of global tariffs impacting their wallets.”
This shift is already being felt in the wider housing market. According to a Halifax report published this month, average house prices fell by 0.5 per cent between February and March, reflecting a slowdown in completions post-deadline. The average UK house price now stands at £296,699, down from £298,274 the month before — although still more than £3,000 higher than in the summer of 2022 at the peak of the post-lockdown housing boom.
As the market adjusts to the new thresholds, higher stamp duty costs are beginning to weigh on buyer sentiment. A quarter of existing homeowners surveyed said stamp duty was the biggest barrier to moving up the property ladder — a figure that rose to 40 per cent among Generation Z respondents.
The end of the tax break comes at a time when overall moving costs have been steadily rising. Barclays’ data shows that homeowners who bought in the past year faced additional expenses averaging £13,530, compared to £9,337 for those who bought more than five years ago — reflecting increases in legal fees, surveys and other charges.
Meanwhile, rising living costs continue to squeeze household budgets. Spending on rent and mortgages rose by 5.4 per cent year-on-year in March, down from 7.7 per cent in February, with the dip attributed to the Bank of England holding off further base rate hikes. Nonetheless, consumer confidence remains under pressure, with growing concern among renters hoping to get on the property ladder for the first time.
