Reports published yesterday indicated chancellor Rishi Sunak was planning to extend the tax exemption on properties up to £500,000 to the end of June.
Previous research by the price comparison site found two thirds (63%) of buyers were looking to buy due to the stamp duty holiday and three fifths (60%) would change their plans if the scheme were not extended.
The survey results come just as estate agents revealed the extent of the financial loss they would suffer should the extension not go ahead.
Failed transactions
A study by Opinium for Propertymark, found estate agents lost an average of £4,123 for every property sale which falls through.
It said the cliff edge created if the stamp duty holiday ended in March would cause a huge financial loss to the industry as many transactions would fall through if not completed by the deadline.
Failed sales were a problem for two in five (42%) businesses and the vast majority of agents (82%) said the loss of revenue had the biggest impact on their business.
In the last year, an average of 17 sales have not completed per estate agent branch, however this figure could rise as data forecast more than 325,000 households would miss the stamp duty deadline if not extended, forcing buyers to withdraw their offers due to the additional costs.
Failed property transactions also cost the consumer an average of £1,571.
But while estate agents would rather the holiday did not end abruptly in March – they have joined the growing numbers who are calling for the ending to be phased.
Mark Hayward, chief policy adviser at Propertymark said: “We have continually called on government to rethink the timings of the stamp duty deadline and the recent speculation of an extension will be good news for the sector.
“However, extending the holiday until June will create another cliff edge and purely push back the increase in the number of failed sales as we approach the new deadline.
“We need government to consider a tapered end to the holiday so that buyers aren’t forced to pull out at the last minute and the property market can continue to thrive.”
Longer-term outlook
MoneySuperMarket’s survey of over 5,000 Brits revealed 74% thought the holiday should be extended because it was helping the market, while 19% responded that it was no longer needed and 7% had no opinion.
Jo Thornhill, finance expert at MoneySuperMarket, said while it was clear consumers were very much in favour of an extension to the deadline, the price comparison website supported the tapered ending.
“While we welcome an extension, looking further ahead, a phased deadline where the benefits are gradually reduced would prevent a ‘cliff edge’ scenario which puts pressure on the market overall,” Thornhill said.
“Aside from the stamp duty holiday – we believe the government needs to put in place longer term support for the housing market.
“It’s still far too difficult for first-time buyers to buy a home and for most young adults it’s a far-off dream. One way of doing this would be to support an increase the availability of mortgages for those with a 5% deposit.
“We know this is something the government is looking into and we’re looking forward to seeing their proposals in due course.”
