Despite no extension to Stamp Duty relief, homebuyers remain largely undeterred and continue with their plans. The majority are pushing forward, with only a minority choosing to pause or alter their strategies.
- A survey revealed that even without the anticipated relief extension, nearly three-quarters of buyers intend to proceed with their purchasing plans.
- Only a minor segment, about 5%, have decided to indefinitely postpone their home purchasing efforts.
- Many buyers are determined to finalise their transactions before the current relief threshold concludes on 31st March 2025.
- Some homebuyers are strategising around additional costs, including saving more or altering their mortgage plans.
Homebuyers across England were surveyed for their reactions to the government’s decision not to extend the current Stamp Duty relief thresholds. This decision, while disappointing to 71% of respondents who hoped for an extension, has not significantly altered the plans for most. Remarkably, 73% of homebuyers indicated they would continue with their purchasing plans, displaying a resilient stance amidst policy changes.
In contrast, only 5% have expressed a decision to delay their home buying indefinitely due to the lack of extension. For others, the impact of this decision appears to be temporary, with 22% stating it would only momentarily affect their plans.
Diligence seems to prevail as 38% of those surveyed are actively progressing with purchases, having already accepted offers. Additionally, 53% are determined to complete transactions before the relief expiration date.
While 39% are undeterred by the upcoming increase in costs, a portion of respondents are making adjustments. About 25% of participants noted that they will need to save additional funds to cover the higher Stamp Duty, while 15% foresee a need to reduce their offers. Another 11% might increase their mortgage amounts, and 10% might reconsider their purchase altogether.
Marc von Grundherr of Benham and Reeves commented on the situation, emphasising that although the decision was unfortunate for those hoping for a change, the robust state of the housing market might mitigate the impact. The recent interest rate reduction by the Bank of England is expected to aid mortgage affordability, potentially offsetting the effects of increased Stamp Duty costs. Despite the current adjustments, the long-term outlook for the UK property market remains positive.
Homebuyers are proving adaptable and steadfast, navigating changes without significant disruption to their purchasing plans.
