Many Buyers Willing To Pay Stamp Duty To Skip Backlog

9th February 2021 posted in BUYERS

As of lunchtime on the 1st of February 2021, there has still been no formal notice as to whether the stamp duty holiday in the UK for house buyers will be expected.

There might have been changes since writing this article, and if there are, we will update you accordingly. However, the fact that there is such a deadline, and so many people look set to miss out on the stamp duty holiday deadline, and there has been no clarity on the matter is a concern for many people.

Given the demand for property right now, and the challenging conditions so many businesses, professionals and sectors find themselves in, most companies are not at full staff or working as effectively as they would like.

There is a backlog in the market

Therefore, there is a notable backlog in the property and mortgage sectors. Professionals are unable to complete tasks and move items along as quickly as they would like. This has created the situation where many homebuyers must face up to losing out on the stamp duty saving, they have likely budgeted for.

However, a recent study by a property buying platform suggests many buyers are willing to forgo this saving to ensure their deal concludes. Not every property buyer is in a position to make this decision, but close to 50% of the 3,717 respondents said they are willing to pay the duty if it would let them skip the queue and conclude their property deal.

Many prospective buyers have their say on the housing market

68% of respondents whose deal has been delayed say it has added to the stress they feel. Given the present circumstances must be highly stressful for many people already, you worry about what some people are going through right now with respect to property moves.

34% of respondents say they have made alternative living arrangements because of the property backlog.

24% of respondents say their transaction has already collapsed because of the backlog, and 35% of respondents say they have increased their offer to make sure the seller doesn’t pull out of the deal.

There are people willing to plough on regardless though. 69% of respondents say they expect or hope to conclude their deal before the end of March, and they will carry on as normal.

14% of respondents say they will purchase a more affordable property if it can be concluded in time, and 9% say they will purchase a more expensive property.

The same study also asked what would happen if people missed the deadline, and they received the following responses:

39% of respondents said they would cancel their property purchase

27% said they would borrow money to pay for the stamp duty fee

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented: “As with most poorly thought-out government rescue plans, the stamp duty holiday has done an outstanding job of fuelling demand, while completely neglecting how the market will actually deal with such an uplift. Although the idea of a stamp duty saving would have been a tantalizing one, many buyers are now finding themselves stuck in market limbo, facing more stress, long delays, temporary living arrangements, or having to place a higher offer. All for a few thousand saved in tax.”

Matthew concluded by saying; “Even worse, the market backlog has been enough to cause purchases to fall through with more potentially having to pull out if they do miss the deadline.”

In line with Government guidelines, our Biggleswade branch is open and our and lettings personnel staff are on hand to assist you.  If you have any queries or need advice on property sales and lettings then please call 01767 317799 or email biggleswade@country-properties.co.uk.