The proportion of first-time buyers purchasing properties for more than £300,000 has increased following a dip recorded earlier this year, according to data from a bank.
Barclays said the share of first-time buyer completions for homes valued at less than £300,000 edged down to 64.3% in September, following a peak of 72.0% recorded by the bank among its customers in May. The figure had jumped from 60.6% in April.
The “nil rate” stamp duty threshold for first-time buyers reduced from £425,000 to £300,000 in April. Stamp duty applies in England and Northern Ireland, and Barclays said first-time buyers had shifted their focus towards homes for under £300,000.
But the more recent increase in the proportion of first-time buyers purchasing homes above £300,000 suggests the market has adapted to the new tax thresholds, the bank said.
Barclays’ mortgage data also indicated that detached and semi-detached houses are increasing in popularity amongst non-first-time buyers, making up a combined 66.1% of purchases in September, up from 63.4% in September 2024.
A survey for Barclays found that, for their second home purchase, a fifth (19%) of people said they had prioritised a “forever home” to live in longer-term.
Looking at the rental market, the survey found that 27% of renters surveyed believe home ownership is achievable within the next five years, up from 22% in August.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Our latest data shows that policy shifts like stamp duty adjustments can create short-term volatility, but buyers adapt to market circumstances.
“As the autumn Budget approaches, keeping a long-term view is key, considering the broader outlook for the housing market instead of responding only to the immediate aftermath of any policy changes.”
In addition to Barclays’ data being used for the research, it commissioned a survey carried out by Opinium Research in October among 2,000 people across the UK.
