Wednesday 13 January 2021 12:07 pm

Home buyers seek stamp duty holiday extension over missed deadline fears

The majority of house hunters believe the government should extend the stamp duty holiday, with many concerned they will be unable to complete their deals before the March deadline.

According to the latest research, 67 per cent of buyers would like to see the property tax break extended, with 48 per cent worried the sale will not be finalised in time. 

Read more: Shock as government policy works! Why we need to keep the stamp duty holiday

The stamp duty holiday, announced last year as a stimulus measure to reinvigorate the housing market after months of lockdown, sparked a surge in transactions.

However, analysis by high-net-worth broker Enness Global found that 25 per cent of buyers said the stamp duty holiday was the driving force behind their decision. 

In total, 71 per cent said they were buying for alternative reasons, according to the survey of 1,000 current home buyers.

Enness Global recommended that those who have a formal offer accepted before the 31 March cut off date should still be eligible for the stamp duty cut. 

Hugh Wade-Jones, managing director of Enness Global Mortgages, said: “It’s clear that the opportunity to save on stamp duty has helped to revitalise the UK property market in what have been tough times due to Covid.”

“Unfortunately, all good things must come to an end and it looks unlikely that we will see an extension beyond the original March deadline,” he added. 

Read more: OBR forecasts house prices to fall next year as furlough and stamp duty holiday end

“With the clock ticking, those yet to complete due to current market delays will be forgiven if an air of panic is starting to set in, having had an offer accepted well in advance of the deadline.

“Perhaps a fair alternative to an extension would be to allow those who have an offer formally accepted prior to the end of March to also qualify for stamp duty relief.”