Property

Rightmove say a six week stamp duty holiday extension could save buyers up to £1bn

Property Reporter
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17th February 2021
Rightmove 123

The latest analysis from Rightmove has suggested that should the government decide to extend the stamp duty holiday by the rumoured six weeks, between 120,000 and 160,000 additional property transactions in England could benefit from the tax-saving

According to their projection, if 160,000 transactions made it through, Rightmove claim that buyers could collectively save £1bn in total.

Rightmove's analysis is based on the number of property transactions that completed each month in England between September and December last year, according to data from HMRC.

The extension would also mean the vast majority of sales that were agreed by the end of 2020 would complete in time to save on stamp duty. There are an estimated 412,000 sales still currently in the legal process that were agreed last year across Great Britain.

Currently, Rightmove estimates that 100,000 buyers who agreed on a purchase last year are set to lose out if the deadline stays as 31st March.

Due to the nature of the conveyancing process, there will be edge cases still unable to complete in time, but it would come as a welcome relief to many of those desperately trying to get their purchase through the logjam.

Tim Bannister, Rightmove’s property expert, said: “We know the stamp duty holiday was intended as a temporary stimulus for the market, but the delays we’ve seen in the home-moving process have been through no fault of the buyers and sellers who agreed on a sale last year and who are now desperately trying to get their deals over the line.

"The delays have been a result of the huge number trying to go through, along with the many challenges of the people involved in the process working from home. If there was a six-week extension it should give the majority of the sales from last year the chance to complete in time.”

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