First-time buyers rush before stamp duty increase deadline

First-time homebuyers in the UK are racing to complete their property purchases before a significant tax increase takes effect on April 1. Recent data from Barclays shows a 59% rise in mortgage completions by first-time buyers since the Autumn Budget, pushing their market share up from 29% to 36%. The urgency comes from the government's planned changes to stamp duty. Buyers who do not finalize their transactions will face an average additional tax of £6,512. Many buyers, about one in eight, say they will drop their plans if they cannot complete the purchase by the deadline. Under the new rules, stamp duty relief for homes valued up to £425,000 will be cut back. The tax-free limit will fall to £300,000, increasing costs for those looking to buy homes above this amount. This change is intensifying the urgency for buyers to act quickly. Despite the looming tax hike, UK housing market confidence has improved to 30%, the highest since October 2024. However, worries about inflation and interest rates are also rising. The average age for first-time buyers has increased to nearly 34, highlighting the financial challenges many face in saving for a deposit amid high living costs. Sian McIntyre, from Barclays, noted that buyers are adjusting their strategies to cope with market changes. She mentioned that despite rising house prices and uncertainty, confidence in the housing market remains strong. Renters continue to strive for homeownership, showing determination to overcome obstacles in the pursuit of property investment.