Data from Barclays Property Insights reveals a significant increase in mortgage completions and first-time buyer purchases following recent changes to the stamp duty. According to the report, average monthly mortgage completions rose by 26% after the Autumn Budget announcement, with first-time buyer purchases up by 59%, now making up 36% of all completions.
The looming deadline for new stamp duty rates is causing concern among homebuyers in England and Northern Ireland. Those who miss the April 1st deadline may face an additional cost of £6,512 on average. Barclays data indicates that demand for homes priced above the current stamp duty threshold of £425,000 has decreased steadily since October 2024.
In light of these challenges, nearly one in eight buyers are considering withdrawing their purchase if they cannot complete before March ends. Additionally, a fifth of prospective movers are opting for smaller properties or relocating to more affordable areas.
Renters are also feeling financial pressure due to 'rentflation,' with rental costs increasing significantly over the past year. Gen Z renters have been particularly affected, experiencing an average annual increase of £1,616. Many young adults find it difficult to save for a home deposit without financial assistance from family.
Sian McIntyre from Barclays noted that "prospective buyers are adapting their behaviour" amid market volatility but remain confident about investing in property. Will Hobbs added that while the UK housing market is still stabilizing post-pandemic, there is optimism about its future prospects.
For further guidance on purchasing a first home, visit Barclays' website.