Stamp Duty Deadline Sparks Mortgage Surge as Homebuyers Race Against the Clock
So, here's what’s been going on in the UK housing market — and it's been a bit of a rollercoaster. March saw a massive surge in mortgage completions, with numbers shooting up by 50%. And for first-time buyers? Even more dramatic — completions jumped a staggering 70%. Why the sudden rush? It all comes down to the end of the temporary stamp duty relief.
Basically, people were scrambling to get their deals over the line before the stamp duty thresholds changed in April. For first-time buyers in England and Northern Ireland, the threshold for paying stamp duty dropped from £425,000 to £300,000. And for everyone else, it fell from £250,000 to just £125,000. That’s a big difference, potentially costing buyers thousands more if they didn’t act fast.
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Barclays, one of the UK’s major lenders, called March a “blockbuster month” for mortgage completions — the busiest since late 2021. But despite this short-term frenzy, there’s a deeper shift happening. Sentiment in the housing market isn’t exactly booming. Rising costs, uncertainty, and economic pressures are making people think twice. Many renters don’t even believe buying a home is realistic anymore — only 16% think it’s possible within the next five years.
Then there's the cost of buying itself. It’s not just the house price — buyers are also facing steeper costs for things like legal fees, surveys, and of course, stamp duty. On average, homeowners who bought in the past year have forked out over £13,500 in extra expenses, compared to just over £9,000 five years ago.
Meanwhile, the cost of borrowing has eased slightly after interest rate cuts. Mortgage rates are now averaging just above 5% for first-time buyers with a 10% deposit. Interestingly, that makes monthly mortgage payments a bit cheaper than renting — £1,328 versus £1,356 — at least nationally. But in places like London and the South, renting can still be the cheaper option.
So yeah, while March was hectic, it’s not necessarily a sign that the market is booming. It was more like a deadline-fueled dash, with buyers trying to avoid getting hit with higher taxes. Long-term, affordability is still a massive hurdle, especially for younger generations. The landscape is changing, and people are becoming more cautious, more strategic, and in many cases, more resigned to renting.
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