The recent government decision on Stamp Duty has not significantly deterred homebuyers.
- 71% of homebuyers hoped for an extension of the current relief, set to expire in March 2025.
- Despite no extension, 73% plan to proceed with their property purchases.
- Only 5% plan to delay their property purchase plans indefinitely.
- The decision has only a temporary effect on 22% of the potential buyers.
In a recent development, the UK Government’s decision not to extend the current Stamp Duty relief thresholds has sparked various reactions among homebuyers. According to a survey conducted by Benham and Reeves, a significant majority, precisely 71%, had anticipated an extension of the relief which is set to lapse on 31st March 2025. Despite hopes being dashed, 73% of the surveyed individuals expressed their intent to proceed with their home-buying plans irrespective of any relief extension.
While only a small portion, precisely 5%, chose to defer their purchasing intentions indefinitely, a notable 22% of respondents indicated that the government’s decision would only temporarily influence their buying decisions. Currently, 38% were actively moving forward with their purchase processes following the acceptance of their offers, highlighting a proactive approach towards property ownership amidst prevailing conditions.
Interestingly, a larger fraction, amounting to 53%, aim to finalize their property acquisitions before the expiry of the relief thresholds. Despite the impending rise in costs, 39% mentioned their commitment to continuing as initially planned. However, buyers are contemplating various strategies to cope with the increased financial burden resulting from the cessation of the relief. A reported 25% will aim to bolster their savings, while 15% are considering revising their offers downwards. Conversely, 11% are likely to increase their mortgage amounts, and 10% are contemplating withdrawing from their purchase altogether.
Marc von Grundherr, the director of Benham and Reeves, shared insights that while an increase in Stamp Duty is far from welcome, it is unlikely to drastically alter the robust property market dynamics witnessed so far. Von Grundherr emphasised that the recent rate cut by the Bank of England could potentially balance out the negative impacts of the heightened Stamp Duty costs. He remarked, “No news is usually good news, however, this hasn’t been the case for the nation’s homebuyers who were hoping to see a stamp duty relief extension in last week’s Autumn statement.”
Von Grundherr further elaborated that the market may experience a surge in urgency among buyers looking to complete purchases before the deadline, followed by a brief period of adjustment for those missing the timeline. Nevertheless, a positive outlook for the long-term vitality of the UK property landscape remains grounded in the current market strength.
The resilient attitude of homebuyers suggests that despite the challenges posed by the Stamp Duty decision, the property market remains steadfast and optimistic.
