London — The UK housing market experienced a significant surge in mortgage completions in March 2025, with a 50% increase compared to the previous month. This rush was driven by homebuyers aiming to finalize purchases before the April 1st deadline, when temporary stamp duty cuts expired.
First-time buyers were particularly active, with completions rising by 70% as they sought to avoid higher costs associated with the reduced tax-free purchase threshold, which dropped from £425,000 to £300,000. Other buyers also faced a lower threshold, decreasing from £250,000 to £125,000.
Despite the March boom, experts anticipate a slowdown in the housing market following the end of the stamp duty relief. The increased financial burden is expected to deter potential buyers, especially among younger demographics, who cite stamp duty as a significant obstacle to homeownership.
Barclays reported that the average additional costs for new homeowners have risen to £13,530, compared to £9,337 for those who purchased five years ago. This increase reflects not only higher stamp duty but also other associated expenses such as legal fees and surveys.
The surge in March completions marks the busiest month in the UK property market since September 2021. However, with the new stamp duty rates in effect, the market is expected to adjust as buyers reassess their financial capabilities and housing aspirations.
