First-time buyers are rushing to secure properties before a major stamp duty hike on April 1, triggering a dramatic 59% surge in mortgage completions since the Autumn Budget, Barclays’ property data reveals.
The scramble to get on the property ladder has helped drive an overall 26% increase in mortgage completions across all buyer categories, with first-time buyers’ share of the market jumping from 29% to 36%, the bank reports.
House-hunters in England and Northern Ireland who fail to complete their purchases before the deadline will face an average extra tax bill of £6,512, and one in eight buyers warn they will abandon their purchases if they do not complete in time.
The surge comes as first-time buyers race to avoid the government’s planned stamp duty overhaul, which will see tax breaks rolled back for lower-value properties.
Under the changes, stamp duty relief for first-time buyers purchasing homes up to £425,000 will be reduced, with the tax-free threshold reverting to £300,000.
The move will add thousands to purchase costs for those buying above the threshold, intensifying the urgency to complete deals before April.
Despite the looming tax hike, confidence in the UK housing market has climbed to 30% – its highest level since October 2024 – up from 24% in January.
However, concerns over inflation and interest rates have reached their highest level since September 2023, suggesting anxiety about the long-term affordability of homeownership.
The financial burden of stepping onto the property ladder is also increasing. The average age of a first-time buyer has risen to nearly 34 in 2024, up from 32 just two years earlier, as many struggle to save for deposits amid rising living costs and mortgage rates.
Sian McIntyre, Barclays’ managing director of mortgages and savings, said: “Our latest data indicates that prospective buyers are adapting their behaviour to get ahead of some of the volatility in the market.
“Encouragingly, amidst rising house prices, uncertainty around interest rates, and the upcoming changes to stamp duty, consumer confidence in the housing market is staying the course.
“Renters are still determined to overcome barriers to homeownership, with this resilience testament to the value individuals place on investing in property.”
