Mortgage completions surged to their highest level in over three years in March as buyers scrambled to beat changes to the stamp duty regime, according to the latest Barclays Property Insights report.

Completions rose by 50% compared to February, the most since September 2021, while activity among first-time buyers soared 70% month-on-month.

The rush preceded the implementation of new stamp duty thresholds, yet despite the flurry of completions, the broader outlook remains cautious. The report reveals a softening in consumer confidence as persistently high household costs weigh on potential buyers.

Spending on rent and mortgages increased by 5.4% year-on-year in March, down from 7.7% in February, following a fall in the Bank of England base rate. However, any reprieve has been tempered by the rising cost of household bills, which now account for 28% of income on average—climbing to 36% for renters. Nearly three quarters of respondents reported higher costs over the past year, averaging an additional £126 per month.

BLOCKBUSTER MARCH

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. 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.”

He added: “Housing consumes a significant portion of income, particularly for renters. With four in 10 adjusting their spending to meet their housing costs, it’s clear that the financial pressures of maintaining a home are intensifying at a time where people face a delicate balance between their essential spending and long-term financial goals.”

While the market saw a short-term boost, longer-term optimism appears to be faltering. Confidence in household finances slipped to 70% in March from 75% the previous month. Confidence in the housing market also declined slightly to 28%.

One of the biggest hurdles remains the upfront cost of homeownership. Four in ten renters (38%) said saving for a deposit is among the greatest barriers to purchasing a home. But new homeowners also face unexpected expenses. On average, buyers who completed in the last year spent an additional £13,530 on associated fees such as stamp duty, legal costs and surveys—up from £9,337 for those who bought over five years ago.

Knowledge gaps continue to trip up prospective buyers. More than one in ten were unaware of mortgage broker or valuation fees when beginning the process, while a third did not understand the likely cost of stamp duty. Around 40% said they did not know how much to budget for moving, surveys or solicitor’s fees.

REASON FOR DELAY

Stamp duty changes have also had a delaying effect for some. According to the research, 14% of would-be first-time buyers said the new bands had hampered their ability to proceed with a purchase. A quarter of existing homeowners now view stamp duty as the biggest barrier to moving home, rising to 39% among Gen Z.

Will Hobbs, managing director at Barclays Private Bank and Wealth Management, noted that despite recent setbacks, the broader economic outlook is showing signs of improvement. “The UK economy’s cyclical pulse has been strengthening a little in the last few months. Household incomes have been growing faster than inflation for some time and that had been showing up in retail sales and even a perkier GDP report,” he said.

However, he warned that uncertainty surrounding potential US tariffs could have a cooling effect, even as lower energy prices and shifting dynamics in Europe offer some relief. March data showed utilities spending dropped by 4.2%, aided by warmer weather, although energy costs remain the biggest contributor to rising household bills for nearly half of consumers.