Bank sees rise in proportion of first-time buyers buying homes for over £300,000

Barclays said the share of first-time buyers purchasing homes valued at less than £300,000 edged down to 64.3% in September, following a peak in May.

Barclays’ mortgage data indicated that detached and semi-detached houses are increasing in popularity among non-first-time buyers (Yui Mok/PA) (PA Archive)

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.”

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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.