Homebuyers face growing fees beyond deposits, survey finds
Mortgage completions in the UK surged by 50% in March, marking the highest level seen since September 2021, according to new data from Barclays Property Insights. The spike in activity came as buyers rushed to finalise deals ahead of changes to Stamp Duty thresholds.
The uptick was most pronounced among first-time buyers, with completions up 70% compared to February. However, the surge in transactions came against a backdrop of growing financial strain for both renters and homeowners.
Barclays’ report revealed that on average, buyers now need an additional £13,530 beyond the purchase price to cover fees such as stamp duty, solicitor’s charges, and surveys. This represents a significant rise from the £9,337 reported by those who bought over five years ago.
Factors delaying homeownership
While some rushed to complete before the tax changes took effect, 14% of prospective first-time buyers said the revised Stamp Duty bands have delayed their plans. Stamp Duty is now viewed as the biggest barrier to homeownership by one in four current homeowners, rising to nearly 40% among Gen Z.
The financial burden of housing extends beyond upfront costs. Monthly expenses related to housing—including rent or mortgage payments, council tax, and utility bills—now consume 28% of household income on average. Among renters, this figure rises to 36%.
Three-quarters of respondents said their housing costs have increased in the past year, with an average monthly rise of £126. For Millennials, the impact is greater, averaging £191 per month.
Despite a 5.4% year-on-year rise in rent and mortgage spending in March—down from 7.7% in February—Barclays noted that household budgets remain stretched. Utility bills were cited as the primary driver of cost increases by nearly half of consumers. Spending on utilities fell 4.2% in March as temperatures rose.
Decline in housing confidence
As financial pressures mount, household confidence is declining. Only 70% of respondents expressed confidence in their personal finances in March, down from 75% the previous month. Confidence in the UK housing market also slipped slightly, from 30% to 28%.
Renters’ aspirations have been particularly affected, with just 16% believing they can purchase a home within five years—a seven-point drop from February.
“We experienced a blockbuster month for completions in March, as buyers raced to get ahead of the stamp duty deadline,” said Jatin Patel, head of mortgages, savings and insurance at Barclays. “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.”
The Barclays Property Insights report combines banking data with consumer research to analyse UK housing trends and behaviour.
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