"Conveyancers are juggling high volumes of clients, all keen to press forward at speed, and it simply won’t be possible to meet all this demand"
- Frederick Jones - Upstix
After 31st March, the nil-rate threshold (the value of property you can buy without paying stamp duty) will be lowered from £250,000 to £125,000, increasing costs for many buyers. For example, for non-first-time buyers, the amount of stamp duty payable on a £500,000 property would increase from £12,500 to £15,000 after the deadline.
Analysis from instant home buyer, Upstix has revealed that as many as 62% of property purchases could be affected by next month's deadline. Its survey of buyers currently in the process of purchasing revealed that if they cannot complete the purchase before March the 31st, 36% could try to renegotiate the price of their property to offset the Stamp Duty banding increases.
24% say they may have to borrow money if they miss the deadline, which could ultimately put their purchase at risk. Meanwhile, 19% of buyers say they could pull out of their property purchase altogether.
34% of would-be buyers surveyed say they would proceed as planned if they missed the Stamp Duty deadline and pay the increased Stamp Duty out of pocket.
While Stamp Duty changes look set to increase costs for buyers, property selling expert, Upstix, warns the current ‘conveyancing crunch’ ahead of the deadline could be costly for sellers too.
“As thousands of buyers rush to complete their property purchases ahead of the Stamp Duty deadline, we’re seeing a conveyancing crunch that impacts buyers and sellers alike," explained Fred Jones, CEO of Upstix, "Conveyancers are juggling high volumes of clients, all keen to press forward at speed, and it simply won’t be possible to meet all this demand,"
He added, “The upshot of this could be costly for both sides. Sellers may have to take a hit on the purchase price to offset buyers’ additional costs. In turn, buyers may have to borrow additional funds, with the added cost and risk that comes with this. Plus, both parties could be at risk of breaking their chains, which could have far-reaching implications for their finances, and their lives,"
Fred concluded, “For those racing to get their house buying and selling chain sewn up before the deadline to avoid the hike, an instant home buyer can offer a great alternative to the more traditional home selling process. Upstix offers a start-to-finish sale in as little as seven days.”
