Failure to extend SDLT relief will ‘scupper housing market recovery’

The vast majority of estate agents are disappointed the current Stamp Duty relief thresholds were not extended during the Autumn Statement and believe the decision will hamper the property market’s recovery.

As many as 84% were hoping to see an extension to the current Stamp Duty relief thresholds with 59% hoping it would be extended to all buyers, not just first-time buyers.

Instead, from April next year, FTBs will pay stamp duty on purchases of £300,000 or more, whilst existing homebuyers will see the tax charged on homes valued from £125,000 or higher.

Impact market activity

Over half of those questioned said the failure to extend the relief will impact market activity from April next year, whilst a further 20% remain on the fence and 24% think there will be no impact.

Also, 38% of agents fear that removing the Stamp Duty relief will have a significant impact on the health of the property market, although a more optimistic 41% think market conditions will continue to improve.

Stamp duty has always been a thorn in the side of homebuyers.”

As a result, many are expecting to see fewer FTBs entering the market and that lower offers will be made to account for the additional costs.

Half of the agents surveyed by GetAgent, however, also believe that further interest rate cuts will soften the impact of the SDLT increases and help steady the market.

Co-founder and CEO of GetAgent.co.uk, Colby Short, commented: “Stamp Duty has always been a thorn in the side of homebuyers but, whilst there may certainly be a brief adjustment period and some instability caused by the rush to complete ahead of the deadline, we don’t expect it to completely deter them from their aspirations of homeownership.”