March saw a UK property market operating at a furious pace as buyers rushed to lock in tax savings ahead of changes to stamp duty thresholds, which arrived on March 31st. 

The volume of mortgage completions increased 50 per cent in March, marking the highest volume since September 2021.

The change in the stamp duty thresholds saw the temporary increases to the thresholds that were put in place in September 2022 end. With the changes now in effect, would-be homeowners are being forced to take stock. 

In new research from Barclays, 25 per cent of existing homeowners revealed that they now see stamp duty as the biggest barrier to buying their next home. This is being felt more acutely by Gen Z, with 39 per cent of under-25s naming it as the biggest barrier they face.

The increase in stamp duty has also 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.

Renters are also feeling gloomier about their prospects of homeownership. Just one in six (16 per cent) currently believe that buying a property is in reach within the next five years, down from 23 per cent month-on-month.

Speaking about this, 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.”

Spending on rent and mortgages increased by 5.4 cent in March from the figure for March 2024. This represents a slight decrease from February’s increase, which was 7.7 per cent, and comes as the Bank of England lowered its base rate in February by 0.25 to 4.5 per cent. 

When it comes to housing costs, consumers are increasingly feeling the pinch. The cost of housing, which includes rent or mortgage payments, council tax, energy, and other bills, now takes up 28 per cent of income across the UK, and 36 per cent for those aged 28-43. 

When asked if their housing costs had increased over the last 12 months, almost three quarters (73 per cent) said yes, marking an overwhelming majority. 

When calculated, those increases amount to an extra £126 a month on average, or £1,516 a year across all ages. For millennials (28-43), two-thirds of those surveyed told us that they had been impacted by cost increases, with the average extra cost working out at £191 a month, or £2,286 a year. 

The principal cause of the increase is utility bills, which is named by nearly half (47 per cent) of consumers as the expense with the biggest rise,  followed by council tax (30 per cent).

In a small silver lining, March’s warm weather and record hours of sunshine saw spending on utility bills decrease by -4.2 per cent. 

As they look to manage the rise in housing costs and rising bills, many consumers are adjusting their spending. 40 per cent of those surveyed told Barclays they are having to adjust spending to meet their increased monthly housing costs.  

These increases, alongside the changes in stamp duty, mean confidence in household has taken a dip in March. Having sat at 75 per cent in February, the score fell to 70 per cent in March, while confidence in the UK housing market also fell slightly to 28 per cent from 30 per cent.

Speaking about this, Patel added: “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.”   

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