December hasn’t historically been associated with the time for looking for a new house, however, new research from Moneybox, the savings financial app, suggests this trend might be changing.
Holiday spending usually means people are more inclined to save at the start of the new year, however, due to the Government’s impending stamp duty threshold change, introduced in the last Autumn Budget, a number of homebuyers are trying to finish their purchases before 1 April 2025. Using data from Moneybox Mortgages, a free mortgage advice service, the number of mortgages in principle (MIPs) completed over the holiday period was up significantly (82 per cent increase year-on-year (YoY) across December).
In fact, on 25 December 2024, there was a 70 per cent YoY rise, with a similar trend seen on New Year’s Day, with a 76 per cent YoY increase.
With the nil-rate threshold reverting back to £125,000 and to £300,000 for first-time buyers (FTBs), many FTBs could see thousands of pounds worth of additional costs added to their house purchase should they buy after April – impacting their savings goals and expectations.
Felicity Holloway, head of mortgages at Moneybox says: “The upcoming stamp duty threshold change is clearly driving urgency among first-time buyers, but when buying a home, it’s vital to balance speed with thoroughness. 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 (MIP) as early as possible is important as it positions you as a serious buyer, which can be advantageous in competitive situations.
“A Stamp Duty Calculator will also help you estimate the cost difference and assess whether proceeding now aligns with your financial readiness. While avoiding higher stamp duty is appealing, It’s important to plan for the long term to ensure the property aligns with your long-term needs and goals.”
Moneybox Mortgage data
| Time Period | MIPs YoY Uplift |
| December | 82% |
| Q4 | 92% |
| Christmas Day | 70% |
| Boxing Day | 55% |
| New Year’s Day | 76% |
Brian Byrnes, head of personal finance at Moneybox says: “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.
“The Lifetime ISA (LISA) is one such product that has already made a significant impact, helping hundreds of thousands get onto the property ladder far sooner than they otherwise could. Today, more than 1.5 million young people across the UK are saving with a LISA, benefiting from the 25 per cent government bonus on their contributions. This vital support has allowed them to continue progressing toward homeownership despite persistent economic challenges and the rising cost of living.
“The LISA not only helps young people save for their first home but also fosters positive savings habits early in life—laying the foundation for long-term wealth building. To ensure its continued success, we believe future-proofing the LISA is essential. Index-linking the property price cap and introducing an emergency cash withdrawal allowance would give the next generation of first-time buyers the confidence and flexibility they need to save for their first home and beyond.”
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