The stamp duty holiday, which began in July 2020, was recently extended in Chancellor Rishi Sunak’s Budget. The extension came as a relief to buyers at risk of facing a “cliff edge” on March 31. The current £500,000 threshold in England and Northern Ireland will now apply until June 30.
Between July 1 and September 30, this will then be reduced to £250,000.
This will then be further reduced to £125,000, which was the threshold in place before the SDLT holiday began.
However, the stamp duty holiday has caused delays within the property transaction process.
Estate agent comparison site, GetAgent.co.uk, has revealed it’s now taking 43 days longer to sell a home due to delays.
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This is 17 days longer when compared to before the stamp duty holiday (January – July 2020).
Year on year, this means property transactions are taking 43 days longer.
The huge delays are largely due to increased demand caused by the stamp duty holiday.
However, it’s not all bad news for buyers looking to nab themselves a good deal.
The data also shows that the average time from when a property is listed online until the point an offer is accepted is down by 14 days.
Before the stamp duty holiday, it was taking the average buyer 138 days from listing to accepting an offer.
The SDLT holiday has led to a surge in buyer interest with the time to find a buyer being reduced by 14 days to just 124 days.
Founder and CEO of GetAgent.co.uk, Colby Short, said the stamp duty holiday has led to a boom in demand but “substantial market delays”.
He continued: “They say that all good things must come to an end and while true, the Budget has delayed this reality for many homebuyers with regard to the current stamp duty holiday.
“However, while the holiday itself has helped boost buyer demand and the speed at which sales are being agreed, this has come with a small print catch in the form of substantial market delays during the tail end of the transaction process.
“It’s now taking more than six weeks longer to complete a sale than it was the previous year and this can feel like an eternity as anyone who has bought or sold a house will tell you.
“Unfortunately, there isn’t much you can do to bypass this backlog other than sit tight and be patient.
“At least, at present, those currently delayed will have the reward of thousands saved in stamp duty when they do finally come to their completion date.”