For those people looking to move home before the stamp duty deadline had a stark warning from The Guild of Property Professionals this month who said that around a third of home buyers (31%) would very likely cancel their planned move if they had to pay stamp duty, with a further 43% admitting that they would most likely do the same! Experts fear that with the property industry unable to process the transactions fast enough, sales still in the pipeline will not have enough time to complete before the stamp duty holiday ends in March.
While there are over 140,000 more people in the process of buying a new home now than this time last year and an estimated 418,000 homes sales progressing to completion according to Zoopla, with many having been prompted by the stamp duty holiday, there are growing concerns over plans for the re-introduction of stamp duty in April 2021.
With the current threshold set at £500,000 and the average house worth £244,513 many would be set to save in stamp duty. However, under current plans, from April 2021 the threshold returns to £125,000, leaving those who thought they would benefit from the stamp duty holiday having to find extra cash to complete the move.
This means that a potential of over 70% of properties currently sold could be dumped back onto the market in early March as a direct result of the Stamp Duty Holiday coming to an end. The only way a seller could overcome this issue is by reducing the value of the sale to cover the loss of stamp duty to the buyer or remarketing it all together. With such a large amount of stock coming back onto the market it is not difficult to see that prices will drop from their current levels. Chuck into the mixing pot the furlough scheme coming to an end in March and you can only imagine the amount of uncertainty that will cause as companies take stock of their financial position and staffing levels.
These are very uncertain times for people looking to move home currently. If you are looking for certainty then contact us for a fair price for a fast sale and get a house move in weeks, not months.