Stamp Duty Deadline Sparks 131% Spike in First-Time Buyer Completions

Data from Moneybox has revealed a significant increase in mortgage completions as first-time buyers rushed to lock in their purchases ahead of the stamp duty threshold changes announced in the Autumn Budget. The rollback saw the nil-rate stamp duty threshold return to £125,000 (£300,000 for first-time buyers), sparking fears of rising home purchase costs. While mortgage applications saw a 44% rise year-on-year, the real story was the dramatic increase in completions as buyers hurried to meet the new deadline.

This surge highlights how tax policy can drive buyer behaviour, with many first-time buyers determined to cross the finish line before the changes took effect. The unexpected uptick in completions is a clear indication of their resilience in an ever-challenging market.

The month of March saw a dramatic rise in mortgage completions as buyers scrambled to secure their property purchases ahead of the stamp duty changes. The stamp duty threshold rollback, effective from April 2025, resulted in a flurry of activity, with many first-time buyers fast-tracking their purchases to avoid paying thousands more in taxes.

According to Moneybox, completions surged as buyers aimed to get ahead of the new rules, with a clear spike in March. This was particularly evident in the rise in Mortgages in Principle (MIPs), which increased by 87% year-on-year in December 2024 alone.

The surge wasn't limited to March—interest also spiked during the holiday season. On Christmas Day and New Year's Day, completions saw a 70% and 76% increase, respectively, as prospective buyers took action during a traditionally quiet period, clearly influenced by the government’s announcement.

Despite the stamp duty deadline passing, first-time buyers are still showing strong interest in securing homes in 2025. Felicity Holloway, head of mortgages at Moneybox, observed that the March spike was a reflection of how determined first-time buyers were to secure their homes before the new tax rules kicked in.

“This dramatic surge in completions demonstrates the resilience of first-time buyers, even in an uncertain market. It's clear that many are committed to crossing the finish line ahead of the changes," said Holloway.

At Mortgage-Tek, we continue to see strong demand from first-time buyers eager to secure their place on the property ladder. Whether you're looking to buy before further changes or simply need expert guidance on navigating the mortgage process in 2025, our team is here to provide tailored, independent advice.

The stamp duty changes may have prompted a rush in completions, but the momentum for 2025 remains strong. Buyers who act now can still make the most of the opportunities available before tax policies change further.