39% of buyers plan to pull out if they miss the stamp duty deadline

39% of buyers plan to pull out if they miss the stamp duty deadline, with 45% willing to pay in full now to skip the market backlog

Research by home buying platform, Yes Homebuyers, has revealed that half of current homebuyers would happily pay the stamp duty owed on their purchase if it meant completing now and avoiding the current market backlog.

The survey of 3,717 people found that those to have seen their property purchase delayed due to the current market backlog have been impacted in a number of ways.

68% of those to have been delayed stated it has added stress to an already stressful life experience, while a notable 34% of delayed homebuyers have had to make alternative living arrangements because of the backlog.

24% have seen their sale fall through as a result of the current market backlog, while 35% have had to increase their offer just to keep the seller from pulling out.

However, the majority continue to keep the faith that they will complete before the end of March. 69% stated that they would carry on as normal and hope to complete in time when asked what they would do to secure a stamp duty saving. 14% would buy a more affordable property if it meant completing in time, with 9% stating they would buy a more expensive property.

When asked what they would do if they do miss the deadline, 39% stated they would cancel their purchase, while a further 27% said they would have to borrow more money to pay for the stamp duty.

Despite remaining largely hopeful about completing in time, 45% of those asked said they would pay full stamp duty costs on their purchase if it meant they could complete now and avoid the market backlog. This is despite the fact that they may still complete in time to secure a saving.

27% of those asked regret their decision to buy and, had they known, they would have waited until after the market backlog had cleared before buying a house.

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented:

“As with most poorly thought out government rescue plans, the stamp duty holiday has done an outstanding job of fuelling demand, while completely neglecting how the market will actually deal with such an uplift.

“Although the idea of a stamp duty saving would have been a tantalizing one, many buyers are now finding themselves stuck in market limbo, facing more stress, long delays, temporary living arrangements, or having to place a higher offer. All for a few thousand saved in tax.

“Even worse, the market backlog has been enough to cause purchases to fall through with more potentially having to pull out if they do miss the deadline.

“At Yes Homebuyers, we’ve seen the current backlog spur a flurry of enquiries. Some have been financially dependent on their sale completing before the end of March, but most just want the stability of a concrete timeframe. Opting for the route of a home buying platform not only enables them to skip the queue of delayed purchases in the regular market, but it allows them to move forward with their own onward purchase.”

Survey of 3,717 current UK homebuyers carried out by Find Out Now (January 22 2021).

Has your delayed home purchase added stress?
Answer	Responses
Yes	68%
Prefer not to say	3%
No	30%

Did you have to make alternative living arrangements?
Answer	Responses
No	58%
Yes	34%
Prefer not to say	8%

Has the sale fallen through?
Answer	Responses
No	68%
Prefer not to say	8%
Yes	24%

Did you have to increase your offer to keep seller committed to the sale?
Answer	Responses
No	61%
Prefer not to say	4%
Yes	35%

Which of the following would you do to complete the home purchase before the deadline?
Answer	Responses
Buy a more affordable property	14%
Buy a more expensive property	9%
Continue as normal and hope to complete it time	69%
Prefer not to say	8%

Given the choice, which of the following would you do if you miss the deadline?
Answer	Responses
Borrow more money to cover stamp duty	27%
Cancel purchase	39%
None of the above	25%
Prefer not to say	10%

Would you give up the stamp duty saving and complete now if you could, rather than continue to be delayed in the hope of making the saving?
Answer	Responses
No	46%
Prefer not to say	9%
Yes	45%

Do you regret the decision to buy, and would decide not to until after the backlog had cleared?
Answer	Responses
No	63%
Prefer not to say	10%
Yes	27%