Stamp Duty: 31% of home movers say they’d pull out unless deadline extended
Research by the Guild suggests thousands of buyers will abandon purchases rather than pay average £2,150 stamp duty.
A third of home movers in England and Wales say they’d pull out of the transaction if it was clear they were going to miss the stamp duty holiday deadline, The Guild of Property Professionals has warned Chancellor Rishi Sunak.
The organisation reveals that 31% of buyers it canvassed were ‘very likely’ to pull the plug on an offer if it became clear their purchase was unlikely to complete before 31st March, while 43% said they would ‘most likely’ do the same.
This research adds fuel to the growing debate about what will happen when thousands of buyers realise they will have to pay the stamp duty on their purchase.
Zoopla estimates that there are 418,000 home sales galloping towards the 31st March deadline, 140,000 more than normal.
This will mean an extra £7,500 for someone buying a £350,000 property and £13,0000 for a £730,000 property.
The average extra bill would be £2,150.
“If the deadline remains as it is, only a quarter of the sales agreed in January will complete in time,” says Guild CEO Iain McKenzie (pictured).
He is calling on the government re-think its decision not to extend the stamp duty deadline.
“Our hope, and the hope of 71% of the public, was that the Government was going to extend the stamp duty holiday, or at the very least, introduce a phasing out period that will ease the pressure on all parties involved, and will prevent a cliff edge.”
Other industry leaders agree including Leaders Romans Group CEO Peter Kavanagh who said ‘thousands’ would be disappointed unless the Chancellor changes his mind.
I think just about all the sales agreed in February and March will also miss the deadline, but I doubt they will be being put together on the basis that they will qualify for any stamp duty saving. Why would January be any different, bar the odd one that has the right ingredients to be able to do so? If they extend it, it will be done at the last minute, probably the Spring budget, for a month, maybe two, to allow genuinely delayed deals to get over the line, not to stoke new year activity any further.
A Purple Bricks sold board, first time i have seen one!!!!!!
The seller must have done the viewing