First-time buyers are opting for auctions to pick up properties, reports suggest, as they run out of time to purchase through estate agents ahead of a Stamp Duty deadline.

With Stamp Duty rates due to rise in April, many first-time buyers are looking at other ways to get their new home deal done, according to property conveyancers.

Chris Barry, Director at Thomas Legal, says: “The rush to save as much as £11,250 before the stamp duty changes in April is still on.

First-time buyers are now attempting more creative ways to get purchases over the line.”

“First-time buyers are now attempting more creative ways to get purchases over the line, and we are seeing auction property enquiries rise as a result,” he says.

“With the average transaction time taking five months, those just finding out about the stamp duty saving are now considering auction purchases as a way to beat the system.”

The ‘nil rate’ band for first-time buyers will go down from £425,000 to £300,000 on 1 April.

Tread carefully

“Auction properties typically have a 28-day completion deadline once a successful bid has been registered so on the face of it seems like a solution,” Barry adds.

But he warns: “Auction properties are usually better suited to seasoned investors and cash buyers to mitigate the risks. First-time buyers need to tread very carefully at auction.”

More buyers are gambling on auctions to beat the clock, but the adrenaline rush can be costly.”

Patricia McGirr, Founder at Repossession Rescue Network, says: “With the stamp duty deadline looming, more buyers are gambling on auctions to beat the clock, but the adrenaline rush can be costly.

“We’re seeing more first-time buyers take the plunge but many underestimate the risks.”

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