Thousands of Buyers to Miss Stamp Duty Deadline

Overwhelmed solicitors and mortgage lenders mean more than 50,000 homebuyers are at risk of missing the stamp duty deadline.

 

Zoopla has warned that tens of thousands of buyers are at risk of losing out on the stamp duty holiday if their sales take longer than the standard three months to complete. The property firm has warned that the record numbers of homes being sold in recent months has resulted in high demand and extreme pressure on officials at all levels involved in the purchase process, putting buyers at risk of a delayed completion date.

 

Those looking to purchase a property without paying stamp duty the tax have until 30th June 30 to complete if their new home costs £500,000 or under. From July 1, the bar lowers and only properties costing £250,000 or less will be eligible. From Oct 1, the nil band rate will return to the usual band of properties sold for £125,000 or less.

 

According to Zooplas research, between March 8 and April 4 approximately 53,500 sales were agreed in England for properties ranging from £250,000 to £500,000. Should these sales be held up by just a few weeks past the standard three-month period from sale agreed to completion, those buyers will miss the June 30 deadline and, therefore, the maximum stamp duty holiday.

 

Zoopla's head of research, Grainne Gilmore, said: "High levels of activity in the housing market have put pressure on the second half of the sales process. "Our data shows the time taken between listing a property for sale and agreeing a sale has fallen compared to the more 'normal' market conditions between 2017-2019, by several weeks in some regions. "However, the time taken to progress from sale agreed to sale complete is taking longer. This is because conveyancers, local authorities and mortgage lenders are trying to process record levels of sales." Ms Gilmore stated that surge in sales is being driven by a "once-in-a-generation reassessment" by the British public of where they want to live due to the work and home life upheaval caused by the Covid-19 pandemic.

 

Between July 1 and Sept 30, only properties costing £250,000 or less will be eligible for the maximum stamp duty holiday.

 

Property firm Rightmove also warned that the conveyancing industry is "historically slow" and struggling to cope with its increased workload. Chief executive of tax specialist SDLT Compass, Chris Ward, said: "The entire legal industry is slow, methodical and precise, and for good reason. The stamp duty holiday has pushed it to its limits, as conveyancers frantically try and process the million-plus people who have moved home in the last year. "It is no easy job, especially right now."