Market insight from Benham and Reeves has revealed that the Government’s decision not to extend current Stamp Duty relief thresholds has not deterred most homebuyers from their purchasing plans.
Only 5% of those surveyed said they would postpone their plans indefinitely.
The survey of homebuyers across England found that 71% were hoping for an extension of the current Stamp Duty relief, which expires on 31st March 2025.
Despite the disappointment, 73% of homebuyers said they would continue with their buying plans, while 22% indicated it would only have a temporary impact on their intentions.
Currently, 38% of respondents reported that they were progressing with their purchase after having an offer accepted.
Meanwhile, 53% were aiming to complete their purchases before the relief thresholds end.
Of those surveyed, 39% said they would proceed as planned despite the upcoming increase.
However, 25% indicated they would need to save more to cover the extra costs, 15% reported they would need to reduce their offer, 11% said they would have to increase their mortgage, and 10% said they might need to withdraw from the purchase entirely.
Marc von Grundherr, director of Benham and Reeves, said: “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.
“Whilst an increase in the cost of stamp duty is far from ideal, it’s unlikely to have any significant impact on a property market that has been going from strength to strength so far this year.
“In fact, the Bank of England’s decision to cut interest rates last week and the long-term impact this will have on mortgage affordability is likely to counteract any negativity caused by an increase in stamp duty costs.
“There will inevitably be a heightened sense of urgency for those hoping to complete ahead of next year’s deadline, as well as a brief period of instability as those who miss it adjust their position within the market, but the long-term view continues to be a very positive one where the UK property market is concerned.”
