The number of mortgage completions in the UK increased by 50% in March as purchasers raced to avoid higher stamp duty payments, according to Barclays. This was even higher among first-time buyers.
The lender reported its busiest month in the UK property market in years, with the highest number of completions since September 2021, when interest rates hit a record low.
Completions at the bank were up by half compared with February, and up by 70% among first-time buyers, who potentially face the biggest cost increases under the revised tax regime.
The chancellor, Rachel Reeves, announced in October last year the of temporary stamp duty cuts in England and Northern Ireland from April, adding thousands of pounds to the costs of many transactions in this tax year.
With the new tax bands now in effect, a quarter (25%) of existing homeowners see stamp duty as the biggest barrier to buying their next home, rising to four in 10 (39%) among Gen Z.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “We experienced a blockbuster month for completions in March, as buyers raced to get ahead of the stamp duty deadline. Meanwhile, 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.”
