Thousands could pull the plug if they miss out on the stamp duty holiday

17 December 2020 | General

A third (31%) of potential buyers are ‘very likely’ pull out of moving if they miss out on the stamp duty holiday.

What’s more, a further 43% of potential buyers said they would likely do the same, research from The Guild of Property Professionals found.

The slow and cumbersome nature of the homemoving process this year could see some buyers miss the deadline, unless the government puts an extension in place.

There have been calls to shift the deadline of 31 March 2021 for some time, though the government has publicly stated that it has no plans to move it.

Iain McKenzie, chief executive of The Guild of Property Professionals, said: “If the deadline remains as it is, only a quarter of the sales agreed in January will complete in time.

“With 140,000 more people waiting to complete sales than this time last year, there will be a significant number of buyers who will have to find additional money for stamp duty if they have not budgeted for it.

“Our hope, and the hope of 71% of the public, is that the government extends the stamp duty holiday, or at the very least, introduces a phasing out period that will ease the pressure on all parties involved, and will prevent a cliff edge.”

The stamp duty holiday moved the minimum threshold from where the tax is charged from £125,000 to £500,000.

This post has originally been featured in Property Wire.