Mortgage completions rose by 50% in March, reaching the highest level since September 2021, according to Barclays Property Insights.
Barclays Property Insights data found completions among first-time buyers (FTBs) increased by 70% compared to February.
Research also showed that homebuyers now need an extra £13,530 on top of property prices to cover Stamp Duty, solicitor fees, and surveys.
This is up from £9,337 for those who bought homes over five years ago.
Additionally, nearly four in 10 (38%) renters pointed to deposit costs as a major barrier to ownership.
Many FTBs were caught out by new fees, with 12% unaware of charges like valuation or mortgage broker fees at the start.
A third did not expect the likely cost of Stamp Duty, and four in 10 could not predict costs for moving, surveys or legal fees.
Furthermore, nearly three quarters (73%) saw expenses rise in the last year, costing an average of £126 more per month.
Millennials felt the biggest impact, with expenses up £191 per month.
Utility bills contributed most to the increase for almost half of those surveyed, followed by Council Tax.
With the Stamp Duty thresholds in place, a quarter of homeowners saw the tax as the main barrier to moving home, rising to almost 40% among Gen Z.
14% of FTBs said the changes delayed their purchase.
Due to rising costs and tax changes confidence in household finances dropped to 70% in March from 75% in February, while confidence in the UK housing market slipped to 28%, according to research.
Just 16% of renters believed they could buy a home in the next five years, compared to 23% the previous month.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “We experienced a blockbuster month for completions in March, as buyers raced to get ahead of the Stamp Duty deadline.
“Meanwhile, for existing homeowners and renters the shift in sentiment reflects the cautiousness felt across the economy as a whole, as consumers are concerned about rising bills and the prospect of global tariffs impacting their wallets.
“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.”
Will Hobbs, managing director at Barclays private bank and wealth management, said: “The UK economy’s cyclical pulse has been strengthening a little in the last few months.
“Household incomes have been growing faster than inflation for some time and that had been showing up in retail sales and even a perkier GDP report.
“The uncertainty created by the US tariffs will certainly have some dampening effect.
Hobbs added: “However, there are potential offsets in the form of lower energy prices and the dramatic changes happening in Europe.
“The latest read on inflation suggests a little more flexibility for the Bank of England too.”
