The upcoming changes to Stamp Duty Land Tax will see the temporary increases to the thresholds that were put in place in September 2022. come to an end. And this is having a profound effect on the UK property market. 

Presently, any first-time buyer pays no stamp duty when buying a home worth £425,000 or more, but, from April 1st, this threshold will drop to £300,000.

In Barclays’ new research, the first-time buyers surveyed revealed that they face paying an average of £6,512 in stamp duty, if they miss the deadline.  

The race to complete has turbocharged the UK property market, with Barclays mortgage data showing that average monthly completions have increased 26 per cent since Rachel Reeves announced the changes in her Autumn Budget. 

This uplift has principally been driven by a 59 per cent surge in first-time buyer purchases, whose share of completions has risen seven percentage points, from 29 per cent to 36 per cent. 

The stamp duty changes aren’t just driving an increase in purchases, but they are also limiting the choice of property stock available to first timers. Barclays data shows that demand for homes above the current stamp duty threshold of £425,000 has steadily declined each month, with completions in this bracket dropping from 21 per cent in October 2024 to 16 per cent in February 2025. 

Many of the first-time buyers Barclays surveyed told us that if they miss the deadline, they will be forced to go back to the drawing board. Nearly one in eight (12 per cent) buyers have told us that they will have to pull out if they do not complete by the deadline. 

Adding to this, over a fifth (21 per cent) told us that they will have to pivot their purchase and find a cheaper property, with 18 per cent saying they would be forced to find a more affordable area to live. 

Speaking about these findings, Sian McIntyre, Managing Director of Mortgages and Savings at Barclays, said: “Our latest data indicates that prospective buyers are adapting their behaviour to get ahead of some of the volatility in the market.”

Barclays research shows that confidence in the UK housing market has grown to 30 per cent, hitting its highest mark since October of 2024. This marks a six per cent increase from January.

However, this increase in confidence is slightly tapered by consumers reporting elevated concerns around inflation and interest rates. Nearly nine in 10 respondents (88 per cent) told us that they were worried about inflation, with 64 per cent reporting worries about interest rates, both represent the highest figures since September of 2023.

Speaking about this, McIntyre added: “Encouragingly, amidst rising house prices, uncertainty around interest rates, and the upcoming changes to stamp duty, consumer confidence in the housing market is staying the course.”

In new research conducted by Barclays, almost 60 per cent (58 per cent) of renters said their rent has increased in the last 12 months, and three in ten (29 per cent) in the last six months. 

Feeling these increases most acutely are Gen Z (18–27-year-olds), with 36 per cent reporting a rise in rent in the last 12 months. 

Those figures perhaps explain why, according to Barclays’ proprietary data, the average age of a first-time buyer in the UK rose to nearly 34 in 2024, up from 32 only two years earlier. 

In February, overall spending on rent and mortgages increased 7.7 per cent year-on-year. As well as rises in rent, we are seeing the effects of more homeowners moving from lower fixed-rate mortgages onto higher rates.

By our calculations, rentflation has left the average UK renter facing an increased monthly cost of £105.90. The impact is more acute among younger adults, with Gen Z experiencing an average increase of £134.70 per month, which is the equivalent of £1,616 a year. 

Those increases have led to one in five (20 per cent) renters saying that increased rental costs are one of the biggest barriers to owning a home.

Meanwhile, 57 per cent of renters, who are aged 27 and under, told us that they are currently saving for a deposit to buy a home, while 40 per cent believe homeownership is within reach in the next five years. That’s a much higher figure than the wider market, which sits at 23 per cent across all ages. 

But the squeeze in saving ability brought about by rentflation has meant that 64 per cent of renters under 27 say that they would find it impossible to buy a home without an inheritance or a loan from a family member. 

Commenting on this, McIntyre added: “Renters are still determined to overcome barriers to homeownership, with this resilience testament to the value individuals place on investing in property. We have several products like Barclays Springboard Mortgage and Mortgage Boost which can help first timers make that step onto the ladder.”

For guidance on how to buy your first home, visit our dedicated section on the Barclays website.