Financial institution sees rise in proportion of first-time consumers shopping for properties for over £300,000

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Your help makes all of the distinction. Learn extra The proportion of first-time consumers buying properties for greater than £300,000 has elevated following a dip recorded earlier this yr, in keeping with knowledge from a financial institution.

Barclays mentioned the share of first-time purchaser completions for properties valued at lower than £300,000 edged right down to 64.3% in September, following a peak of 72.0% recorded by the financial institution amongst its prospects in Could. The determine had jumped from 60.6% in April.

The “nil fee” stamp responsibility threshold for first-time consumers diminished from £425,000 to £300,000 in April. Stamp responsibility applies in England and Northern Eire, and Barclays mentioned first-time consumers had shifted their focus in direction of properties for underneath £300,000.

However the newer enhance within the proportion of first-time consumers buying properties above £300,000 suggests the market has tailored to the brand new tax thresholds, the financial institution mentioned.

Barclays’ mortgage knowledge additionally indicated that indifferent and semi-detached homes are growing in recognition amongst non-first-time consumers, making up a mixed 66.1% of purchases in September, up from 63.4% in September 2024.

A survey for Barclays discovered that, for his or her second dwelling buy, a fifth (19%) of individuals mentioned that they had prioritised a “endlessly dwelling” to dwell in longer-term.

Wanting on the rental market, the survey discovered that 27% of renters surveyed imagine dwelling possession is achievable inside the subsequent 5 years, up from 22% in August.

Jatin Patel, head of mortgages, financial savings and insurance coverage at Barclays, mentioned: “Our newest knowledge reveals that coverage shifts like stamp responsibility changes can create short-term volatility, however consumers adapt to market circumstances.

“Because the autumn Funds approaches, holding a long-term view is essential, contemplating the broader outlook for the housing market as an alternative of responding solely to the speedy aftermath of any coverage modifications.”

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Along with Barclays’ knowledge getting used for the analysis, it commissioned a survey carried out by Opinium Analysis in October amongst 2,000 folks throughout the UK.