100,000 house buyers to miss out on stamp duty cut - Rightmove
By Sean Farrell
Date: Monday 15 Feb 2021
(Sharecast News) - About 100,000 property buyers are likely to miss out on a stamp duty saving because they will not complete in time to cash in on the temporary cut, Rightmove said.
Chancellor Rish Sunak's stamp duty holiday for the first £500,000 of a purchase price is due to end on 31 March. The measure prompted a mini-house buying boom as households rushed to take advantage of the reduction.
Rightmove estimated about 100,000 buyers who agreed a purchase by Christmas would fail to complete by the deadline and that one in five of those who agreed to buy in July were still in a logjam.
The stamp duty holiday caused house prices to surge in the second half of 2020 before dipping towards the end of the year and as the frenzy eased. Rightmove said prices rose unexpectedly by 0.5% to an average of £318,580 in February as demand outstripped supply, suggesting many buyers' desire to move does not depend on avoiding stamp duty.
The market has also been supported by households rethinking their requirements during Covid-19 lockdowns and with many people planning to work from home at least part of the time.
Tim Bannister, Rightmove's property data director, said: "Last year the market was unexpectedly buoyed by buyers' determination to move and satisfy their new lockdown-induced housing needs. We may well be seeing a continuation of that this year."
Bannister said demand outstripped supply partly because fewer sellers were putting their property on the market, particularly family homes as parents are distracted by home schooling.
He said: "Whilst it's too late for the stamp duty holiday, there are good reasons to come to market now, especially if selling a property suitable for a family. There are more possible buyers looking and fewer suitable alternatives to divert their attention away from yours."
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