Mortgage completions surged 50 per cent in March amid race to swerve stamp duty
Mortgage completions have risen to their highest level since September as buyers rushed to avoid higher property taxes.
Completions in March jumped 70 per cent compared to February for first-time buyers, according to Barclays, ahead of a change to stamp duty rates in April.
“We experienced a blockbuster month for completions in March, as buyers raced to get ahead of the stamp duty deadline,” Head of Mortgages at Barclays, Jatin Patel, said.
The change in stamp duty tax bands, as well as the end of first-time buyer relief, added an extra £13,530 on to the average property price in April.
But despite the higher demand for properties, house prices were steady in March with 3.9 per cent growth month on month.
Analysts have suggested that the stamp duty deadline has masked the effects of an ongoing affordability crisis in the UK’s housing market, creating overall steady demand.
But estate agents have said lower interest and swap rates will improve affordability in the coming months.
“We also saw the Bank of England implement a second base rate reduction in February and so it’s only a matter of time before this boost to buyer market sentiment starts to accelerate the level of house price growth being seen across the market,” CEO of Yopa, Verona Frankish, said.
“The dip in inflation to 2.6 per cent is encouraging news as far as future interest rate movements are concerned, and if this downwards trend continues, it will make it easier for the Bank of England to cut rates again sooner rather than later,” Mark Harris, chief executive of mortgage broker SPF Private Clients, said.