Homebuyers Rush to Complete Purchases as Stamp Duty Relief is Slashed
According to data released by Barclays, mortgage completions rose by 50 per cent in March, marking the highest increase in over three years. This surge in completions was largely driven by homebuyers rushing to complete purchases ahead of a dramatic reduction in stamp duty relief. As GB News reports, the number of mortgage completions by first-time homebuyers was up 70 per cent compared to the previous month.
The change in stamp duty relief, which came into effect in April, has made more people liable for the tax. As of April, first-time buyers in England and Northern Ireland are paying stamp duty on properties priced from £300,000, down from the original threshold of £425,000. For other types of homebuyers in the UK, the threshold at which individuals start to pay the levy has plummeted from £250,000 to £125,000.
Analysts are warning that higher stamp duty costs are beginning to impact activity within the housing market. According to a survey, a quarter of current homeowners cited stamp duty as the biggest barrier to buying their next home. This percentage rises to 40 per cent among Generation Z. GB News understands that these changes are having a significant impact on the housing market.
Figures from Halifax project that average house prices had declined by 0.5 per cent compared with February. The average house price across the country sits at £296,699, which is down from £298,274 in February 2025. However, this figure is still more than £3,000 higher than during summer 2022, when the housing market’s post-lockdown boom peaked.
In addition to stamp duty, research from Barclays identified solicitors’ fees and surveys as being other extra costs causing Britons stress. Homeowners who bought property in the past year have to add £13,530 to the property price tag, compared with £9,337 cited by those who bought a home more than five years ago.
Jatin Patel, the head of mortgages, savings and insurance at Barclays, described March as being a “blockbuster month” for mortgage completions. Patel said: "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.”
Last month, rent and mortgage spending increased 5.4 per cent year-on-year, a drop from 7.7 per cent in February. This is in line with the Bank of England’s base rate cut, which saw interest rates slip to 4.5 per cent. As the housing market continues to evolve, one thing is certain – homebuyers and homeowners are facing a new landscape of challenges and opportunities.
The data from Barclays and Halifax suggests that the housing market is experiencing a significant shift. As GB News continues to monitor the situation, it is clear that the changes to stamp duty relief are having a lasting impact on the market. With interest rates and house prices fluctuating, it is essential for homebuyers and homeowners to stay informed about the latest developments.
The changes to stamp duty relief have significant implications for the housing market. As the market continues to adjust to the new landscape, it is likely that we will see further changes in the coming months. GB News will continue to provide updates on the situation as more information becomes available.
In conclusion, the reduction in stamp duty relief has led to a surge in mortgage completions, as homebuyers rush to complete purchases ahead of the changes. As the housing market continues to evolve, it is essential for homebuyers and homeowners to stay informed about the latest developments. With interest rates and house prices fluctuating, it is crucial to seek expert advice when navigating the complex world of mortgages and property.
Source: GB News
