The latest research from over-50s property specialists, Regency Living, has revealed that the majority of current homebuyers are motivated to complete before next year’s stamp duty deadline, however, a high proportion of those who don’t will have to re-evaluate their position in the market - which could spur an increase in transactions falling through.
The survey of current homebuyers, commissioned by Regency Living, found that beating the latest stamp duty deadline is a motivating factor in the current market.
As of 1st April next year, stamp duty relief thresholds will revert back to their previous levels, meaning buyers completing from this date onwards will see an increase in the cost of purchasing a property.
No surprise then, when asked to rank their motivation to beat the deadline out of 10, 44% answered 10 - or very motivated. A further 38% answered a five or higher.
Such is this motivation to complete before 1st April next year that 11% stated they are offering significantly more than the asking price of properties in order to secure one, whilst 57% are offering slightly more to entice sellers.
But whilst this increased activity and propensity to pay more may help stimulate the market in the short-term, the findings from Regency Living suggest that a heightened degree of market instability could unfold following the increase to stamp duty thresholds next April.
39% of those surveyed stated that should they miss the deadline, they would need to lower the offers they are currently making on properties.
22% said they would need to re-evaluate their current mortgage offer in order to borrow more to maintain their market position.
26% went as far as to say they would need to start over and look for homes at a lower price point.
Sales & Marketing Director at Regency Living, Tim Simmons commented:
“The Stamp Duty Land Tax adjustments approaching in March 2025 are proving to be significant motivators for house hunters in the market as we close out the year.
So much so that many are prepared to offer above asking price simply to secure a purchase.
As a result, we’re not only in for a very busy end to 2024, but 2025 looks set to bring much of the same.
Of course, we’ve seen how a stamp duty deadline can negatively impact the market and we’re likely to see more of the same this time around. Not only does heightened demand inflate house prices significantly, but those sales that fail to complete prior to the deadline are at risk of collapse, or at best, facing delays as buyers re-establish their position within the market.
It’s high time the government reviews the relevance of stamp duty in today’s market as it presents a significant financial barrier for homebuyers and having no stamp duty to pay is certainly one of the key benefits that we see drawing many mature buyers to the park home sector.
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