"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"
- Marc von Grundherr - Benham and Reeves
The latest market insight from London lettings and estate agent, Benham and Reeves, has revealed that the decision not to extend current stamp duty relief thresholds in the recent Autumn Budget hasn’t deterred the vast majority of homebuyers from their plans to purchase.
The survey of homebuyers across England, commissioned by Benham and Reeves, found that 71% had been hoping to see current stamp duty relief thresholds extended beyond 31st March next year.
However, whilst the government’s failure to do so may have brought disappointment, it’s unlikely to halt the positive property market momentum that has been building in 2024.
That’s because 73% of homebuyers surveyed by Benham and Reeves said they would continue with their plans to purchase, with a further 22% saying it would only temporarily impact their plans. Just 5% stated they had put the idea of purchasing off indefinitely.
38% of those surveyed said they were currently progressing through a purchase having had an offer accepted, meaning that whilst the clock is ticking, they still have a chance of completing before next year’s 31st March deadline.
In fact, 53% said they were hoping to complete before current stamp duty relief thresholds revert back, however, if they do miss the deadline it could cause some momentary instability for the property market.
Whilst 39% will carry on as planned despite a stamp duty cost increase, 25% stated they would have to save further in order to cover the additional costs, 15% said they would need to reduce their original offer in order to cover the additional cost, 11% said they would need to increase their mortgage, whilst one in 10 said they would need to pull out of their purchase altogether.
Director of Benham and Reeves, Marc von Grundherr, commented: “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.”
