In March, mortgage completions surged by 50% as buyers hurried to secure transactions amid rising stamp duty rates. According to Barclays Property Insights, the month experienced the highest volume of completions since September 2021. First-time buyers contributed significantly to this increase, with completions rising 70% compared to February.
"The increase in stamp duty has delayed some prospective first-time buyers from getting on the property ladder, with 14 per cent reporting that the recent band adjustments have impacted their ability to buy a home," stated Barclays.
The study reveals that homebuyers now require an additional £13,530 on average to cover taxes and fees, a notable increase from the £9,337 reported five years ago.
Meanwhile, the confidence of renters in their ability to purchase property within five years fell by seven percentage points. Housing costs, including mortgage payments, council tax, and utilities, now constitute 28% of the household income, a figure rising to 36% among renters. Nearly three-quarters attribute this to increased expenses.
Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, commented, "We experienced a blockbuster month for completions in March, as buyers raced to get ahead of the stamp duty deadline."
Barclays reported that spending on rent and mortgages increased by 5.4% year-on-year in March, although overall economic sentiment appears cautious. On the future economic outlook, Will Hobbs, Managing Director at Barclays Private Bank and Wealth Management, said, "The UK economy's cyclical pulse has been strengthening a little in the last few months.”
The analysis also noted a 4.2% decrease in utility spending in March due to warmer weather, although utility bills have seen the largest year-on-year increase for consumers.
For those looking to purchase a home, more information can be found on the Barclays website: www.barclays.co.uk/mortgages/first-time-buyers/.