Sentiment amongst estate agents suggests many are concerned a ‘market correction’ in the form of a slow down in transactions and house prices could happen following the end of stamp duty first time buyer exemptions in March 2025.
A survey commissioned by GetAgent.co.uk found since the Autumn budget, during which it was confirmed the current SDLT relief thresholds for First Time Buyers would revert to the rates pre Liz Truss’ disastrous mini-budget in 2022, there has been a spike in activity amongst buyers. 47% of agents responding to the survey report seeing a heightened sense of urgency amongst buyers ahead of the SDLT deadline, with the same number expecting the first three months of 2025 to see higher level of market activity compared to previous years.
The main concern is around an increase in the number of throughs, with nearly four in ten (38%) saying they expected a increase amongst buyers who fail to complete by the deadline. 47% believe the market will see a drop in transaction levels in the months following 31st March deadline, with 45% also concerned that house prices could also take a dip.
Interestingly the wide availability of stock is keeping prices reasonably level with just 15% of respondents saying buyers are making offers above the odds with respect to asking price, in order to secure a property more quickly. .
Commenting on the results of the survey co-founder and CEO of GetAgent.co.uk, Colby Short, said:
“The government’s decision not to extend current stamp duty relief thresholds has certainly spurred an increase in buyer activity, with those who may have previously been on the fence now eager to complete before 1st April to secure a saving. The good news is that only a small proportion of these buyers are offering above the odds to secure a property in time, which should prevent the market from overheating to the same extent we’ve seen following previous stamp duty deadlines.
However, a heightened level of buyer activity will inevitably drive both transaction volumes and house prices upwards, leaving many agents reasonably concerned about a potential market correction once the deadline passes. Of course, a correction is certainly not a crash and so whilst we may see a momentary dip in activity during the second quarter of this year, we expect the market landscape to steady and for any correction seen to be short lived.”
One Response
It surprises me that there has not been a market correction already. We all know that we’ve lost a lot of first time buyers and investors, we all know that there are too many properties for sale and not enough buyers over the last 2 years. But property values seem not to have dropped and sellers are holding out for more than the property is worth. I am seeing quite a few down valuations at the moment and instances where properties have been overvalued. I am coming across more and more matters where agents are taking properties on for the price that the seller wants not what is realistically achievable just to take the instruction. It’s about time these lender’s stood up for themselves and refused to lend on what is an overpriced property and market instead of turning around to the buyer and saying your risk to take on.
As there has not been a correction already, I doubt that there will be a correction in April for the sake of a £2500 SDLT hike.