Buyers use Stamp Duty hike to seal better property deals

Buyers are using the looming Stamp Duty hike to negotiate better property deals, Hamptons claims.

The average buyer who had an offer accepted last month negotiated a median discount of £5,000.  This is the biggest reduction since December 2023, and has doubled from £2,500 in October.

FTBs currently pay Stamp Duty if their home costs more than £425,000, but it is set to drop to £300,000 at the end of March.

The temporary relief was introduced by the previous Conservative government, and current Chancellor Rachel Reeves has refused to extend it.

Race against the clock

Evidence suggesting first-time buyers are racing against the clock to beat the deadline, was revealed by Rightmove last week.

Hamptons says the average mover will see their Stamp Duty bill rise £2,500 from April.

In England and Wales, 55% of buyers successfully negotiated a discount of £2,500 or more last month, up from 51% in October.

However, discounts remain less common than last year when mortgage rates peaked. In December 2023, 58% of homes were sold for at least £2,500 less than the asking price, which was the highest proportion since May 2020 during the Covid lockdown.

Historic data suggests that around 71% of all sales agreed last month should complete before the Stamp Duty deadline. But only just over half of flat purchasers (55%) are likely to complete in time.

The chance of a sale agreed in December reaching completion before next April is now close to a coin flip.”

Aneisha Beveridge, Head of Research at Hamptons (main picture), says: “The number of sales being agreed is ending the year strongly as buyers look to secure a home ahead of the Stamp Duty rise next year.  But the window to lock in a pre-April 2025 completion is closing quickly.

“The chance of a sale agreed in December reaching completion before next April is now close to a coin flip.”