Moneybox has reported an 82% increase in mortgage in principle applications in December, as first-time buyers rushed to get ahead of the stamp duty changes.

The data also revealed a 70% year-on-year rise in activity on Christmas Day and a 76% increase on New Year’s Day.

While the Christmas season usually prompts a slowdown of activity within the market, Moneybox suggested that the impending stamp duty threshold change – introduced by the Government in the Autumn Budget last October – is driving a significant number of homebuyers to try to progress with purchasing plans before 1 April.

With the nil-rate threshold reverting back to £125,000 and to £300,000 for first-time buyers, many could see thousands of pounds worth of additional costs added to their house purchase should they buy after April.

Head of mortgages at Moneybox, Felicity Holloway, said that the upcoming stamp duty threshold change is “driving urgency” among first-time buyers.

“When buying a home, it’s vital to balance speed with thoroughness,” Holloway commented.

“We know that many aspiring homeowners have been saving their deposit for many years, so it's no surprise that some have re-assessed their homebuying timeline and hope to expedite the process. Completing a mortgage in principle as early as possible is important as it positions you as a serious buyer, which can be advantageous in competitive situations.”

Head of personal finance at Moneybox, Brian Byrnes, added: “For decades, homeownership has been seen as a cornerstone of financial stability and one of the most effective ways to build wealth, thanks to the potential for equity growth over time.

“With changes to stamp duty fast approaching, it’s never been more important to ensure there are robust mechanisms in place to support the next generation of first-time buyers in achieving their homeownership dreams and securing their financial future.”

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