Figures released by the property portal Rightmove have shown an almost 10% increase in the number of agreed house sales collapsing between July and December 2020.
Some professionals in the sector are predicting that these figures will grow higher, as the deadline for the stamp duty land tax holiday gets closer and then lapses. They say more and more buyers will miss out as logjams created in the housing transaction pipeline scupper more people’s dreams.
David Hannah, founder of Cornerstone Tax, explains:
“These statistics are shocking, if not wholly surprising, when you consider how many people are trying to take advantage of a scheme that is rapidly approaching its end. This kind of hard deadline was bound to lead to this kind of bottle neck and demand is sure to fall considerably when it passes. In any market consistency and certainty is key to overall stability and growth. Growth so far has come from an artificially inflated demand but does not look long term.
“Now with the end of the Stamp Duty holiday imminent, home-buyers across the country are desperate to complete the conveyancing process, lest they pay thousands more for their new properties. This has resulted in a logistical nightmare for the housing market, and will likely result in many more deals falling through.
“A cliff-edge end to the Stamp Duty holiday is simply inviting a catastrophe, as buyers and sellers alike will realise they will likely miss the deadline and withdraw from the deal. Not only this, but many buyers will miss out on the deadline and will then simply be unable to afford a move.”
