Thousands of homebuyers risk missing stamp duty deadline

A surprising 71% of homebuyers with accepted offers will fail to meet the 31 March stamp duty deadline, a survey reveals.

The research from estate and lettings firm Benham and Reeves, highlights that sluggish conveyancing is the main reason slowing down property transactions across the nation.

The study, which questioned more than 1,000 British buyers who have secured an offer but are yet to finalise their purchase, found that 62% have experienced a lengthier buying process than they expected.

Now 71% fear they won’t complete in time to benefit from the current stamp duty land tax (SDLT) relief, potentially facing heftier tax bills as a result.

The property purchasing process

Marc von Grundherr, a director of Benham and Reeves, said: “Many homebuyers don’t fully understand how long the property purchasing process can take and so it’s little surprise to hear that many have faced frustrating delays.

“Even the most proactive of buyers can fall foul to a protracted purchasing timeline and, unfortunately, it’s the conveyancing process that is often to blame.”

“For today’s homebuyers, the cost of such delays is particularly profound because it could be the difference between beating and missing the SDLT deadline which can itself dictate whether or not buyers have to pay thousands of pounds in land tax.”

Buyers won’t proceed

He added: “There’s a good chance that those who do miss the deadline may have to rethink their position within the market, as the likelihood is that a large number simply won’t be able to cover the increased cost of stamp duty and will therefore be unable to proceed.”

The survey found that 38% of respondents are struggling with the conveyancing stage as the bottleneck.

Another 28% note that arranging surveys dragged on longer than anticipated, while 25% struggled to pinpoint a suitable home to buy in the first place.

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