Over 25,000 first-time buyers in England who are currently in the process of completing on a property purchase are predicted to miss the end of March stamp duty deadline and complete in April.
This is according to the latest research from Rightmove, which also reveals that close to 74,000 movers in England in total are set to miss the deadline and complete in April, with a collective £142m in extra stamp duty payments on the line:
For first-time buyers specifically, there will be an estimated £34m in additional payments on the line for those who complete in April.
Due to the stamp duty thresholds, different types of buyers are set to be disproportionately affected by the upcoming changes.
An average home-mover in England will face an extra £2,500 in stamp duty costs from 1st April. However, while first-time buyers of homes priced at £300,000 or less will continue to pay no stamp duty, first-time buyers of homes priced between £500,001 and £625,000 are the most affected group of all, facing an extra £11,250 in costs.
On a regional basis, the South East contains the most buyers set to just miss the deadline and most home-movers in England will face an additional charge of £2,500 from 1 April.
Rightmove is predicting a conveyancing log-jam as movers rush to complete before the deadline, with first-time buyers in London particularly affected. Consequently, Rightmove is calling for a short extension to the stamp duty deadline, to help the 74,000 home-movers who are currently set to miss it and complete in April
Rightmove’s property market expert Colleen Babcock commented, “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.”
