Call to extend the stamp duty deadline

Around 25,000 first-time buyers across England are on course to miss the critical stamp duty deadline of 31 March because their property completions will be in April.

That delay will trigger an extra £34 million in tax, Rightmove says, and it wants the government to temporarily extend the deadline.

Its analysis shows that nearly 74,000 home-movers will fail to finalise their purchases in time, facing a combined £142 million in extra charges.

The South East stands out as the region with the highest number of buyers likely to narrowly miss the cut-off, amplifying the financial sting due to its high property prices.

Avoid paying extra in tax

The platform’s property market expert, Colleen Babcock, said: “We expect a rush to complete close to March 31st as first-time buyers and home-movers try to avoid paying extra in tax.

“Our numbers show how there is a relatively small, but disproportionately impacted group of first-time buyers who will be caught out by the changing thresholds, highlighting some disparities in the way the current system works.”

She added: “With 74,000 people only just set to miss the deadline, in part because of the extremely lengthy completion times in England, we think it would make sense to grant a short extension to the deadline and help these movers, rather than have them face higher charges when they complete later in April.”

Extra £2,500 being added

For the average home-mover in England, the delay to complete translates to an extra £2,500 being added onto their bill from 1 April.

However, first-time buyers snapping up homes valued between £500,001 and £625,000 will bear the heaviest burden, with a hefty £11,250 surcharge looming.

Rightmove’s data, drawn from homes marked Sold Subject to Contract (SSTC) and typical completion timelines averaging 163 days, paints a grim picture.

Properties with two bedrooms or fewer, often the choice of those stepping onto the housing ladder and priced up to £625,000 will see 25,000 sales being affected.

A conveyancing bottleneck is brewing

As the deadline nears, a conveyancing bottleneck is brewing, particularly in London, where first-time buyers are scrambling to dodge the tax hike.

Rightmove is warning of a frantic rush to seal deals before the month’s end, predicting chaos in the legal process as movers strive to avoid the penalties.

It now wants the government to extend the deadline briefly, offering relief to the 74,000 caught in this predicament.

For first timers already stretching their finances to secure a foothold in the market, the looming tax blow could prove a bitter pill.

While those buying homes up to £300,000 escape stamp duty, the tiered system leaves others exposed, with the South East’s pricey market adding to the pressure, the platform warns.

First-time buyers disheartened

Propertymark’s chief executive, Nathan Emerson, said: “There will be a lot of first-time buyers disheartened by the fact that they will have to pay, in some cases, thousands of extra pounds to complete their house purchase from April especially as many of the delays experienced will have been out of the buyers’ control due to issues presented in the property chain.

“Moving forward, we know that those determined to buy a home and step onto the property ladder will factor this into their costs.”

He adds: “However, for some, this is not possible or will not be easy to accomplish. The extra cost may come as a blow and set people back from being able to make their aspirations of owning a property a reality.”

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