But strong demand persists even after deadline passes
First-time buyer mortgage completions jumped by 131% in March 2025 compared to the same month last year, according to new figures released by Moneybox.
The significant increase, which exceeded historic expectations by 56%, coincided with a rush to complete purchases before the government’s Stamp Duty rollback took effect on April 1. As part of changes introduced in the Autumn Budget, the nil-rate Stamp Duty threshold reverted to £125,000 — or £300,000 for first-time buyers — raising potential costs for many entering the housing market.
Mortgage application volumes were also up, rising 44% year-on-year. However, the more moderate growth in applications suggests many buyers had initiated the process earlier and were focused on finalising deals before the deadline.
“This significant spike in March completions shows just how determined first-time buyers were to cross the finish line before the Stamp Duty changes came into effect,” said Felicity Holloway (pictured), head of mortgages at Moneybox. “It’s a powerful reminder of how tax policy can influence buyer behaviour and highlights the continued resilience and resolve of this group in an often-challenging market.”
The March figures followed several months of rising activity. Moneybox reported an 87% year-on-year increase in completions of mortgages in principle (MIPs) in December 2024. The Christmas period also saw heightened demand, with MIP completions rising by 70% on Christmas Day and 76% on New Year’s Day, indicating the announcement had a notable impact on buyer timelines.
According to property portal Rightmove, over half a million buyers were set to complete transactions before the Stamp Duty changes took effect — representing nearly half of the estimated 1.15 million UK property deals anticipated this year.
“Even though the deadline has now passed, we continue to see strong interest from first-time buyers who remain committed to getting on the property ladder in 2025,” Holloway said.
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