UPDATED

Survey: 45% of buyers would pay full stamp duty to skip the market backlog

NEWS
COMMENTARY
GUIDE

We give market commentary when journalists or news outlets approach us directly for comment on specific topics. We share our commentary here too. See below.

Our survey found that almost half of current homebuyers would happily pay the stamp duty owed on their purchase if it meant completing now and avoiding the current market backlog. What's more, 39% would need to withdraw from their sale if their sale fails to complete before the end of March. See more findings and analysis below.

"

Real-life impact of the property market backlog

We surveyed of 3,717 people who were caught up in the property market backlog, and found that those who have seen their property purchase delayed have been impacted in a number of ways.

(If you aren't up-to-speed on the current market backlog and how the Government's stamp duty holiday has played into it you can read our 2-minute explainer here).

Stress, and alternate living arrangements

68% of those who have been delayed stated it has added stress to an already stressful life experience, while a notable 34% of delayed homebuyers have had to make alternative living arrangements because of the backlog.

Fall-throughs and price-hikes

24% have seen their sale fall through as a result of the current market backlog, while 35% have had to increase their offer just to keep the seller from pulling out. (If you're a seller who's had a buyer pull out, remember that we buy any house - meaning we can step in and repair your chain quickly).

Keeping the faith

Stamp Duty Saving Article. An image of the words "Tax Free" written on a chalk board, with a calculator beside it.

However, the majority continue to keep the faith that they will complete before the end of March.

When asked what they'd do to secure the stamp duty saving, 69% stated that they would carry on as normal and hope to complete in time.

14% said they'd buy a more affordable property if it meant completing in time, with 9% stating they would buy a more expensive property.

For those who miss the deadline...

39% would have to withdraw from their purchase

When asked what they would do if they do miss the deadline, 39% stated they would cancel their purchase, while a further 27% said they would have to borrow more money to pay for the stamp duty.

45% would pay the stamp duty if it meant completing now

Despite remaining largely hopeful about completing in time, 45% of those asked said they would pay full stamp duty costs on their purchase if it meant they could complete now and avoid the market backlog. This is despite the fact that they may still complete in time to secure a saving.

27% of those asked regret their decision to buy and, had they known, they would have waited until after the market backlog had cleared before buying a house.

Analysis: What does this mean for the housing market - and what happens next?

As with many hastily thought-out government rescue plans, the stamp duty holiday has done an outstanding job of fuelling demand, while unfortunately neglecting how the market will actually deal with such an uplift.

Although the idea of a stamp duty saving would have been a tantalising one, many buyers are now finding themselves stuck in market limbo, facing more stress, long delays, temporary living arrangements, or having to place a higher offer to hold onto their purchase... All for a few thousand saved in tax.

But how real is that saving anyway? The incentive has driven property prices to new highs - so it's actually arguable that the stamp duty saving is actually costing homebuyers more, rather than saving anything when it's all said and done.

A dated system exposed (again)

Even worse, the market backlog has been enough to cause purchases to fall through, with even more potentially due to pull out if they do miss the deadline.

So regardless of what happens with Stamp Duty, the strain that the "stamp duty holiday" has placed on the UK's housing market exposes our archaic system again. Hopefully this may be a driver for change in the future... Although we've said that about a lot of different things for decades now - and still nothing's really changed.

In fact, this year has driven more enquiries than ever before for our "buy my house " service, which home sellers typically use when the traditional property market is failing them.

Sellers seeking speed

At Yes Homebuyers, we’ve seen the current backlog spur a flurry of enquiries from sellers caught up in the jam.

Some have been financially dependent on their sale completing before the end of March, but most just want to sell their home quickly and easily, and have the stability of a concrete timeframe in which they can sell. Ultimately, our service does this: it allows home sellers to skip the queues entirely. By doing so, they can move forward with their onward purchase.

"

Real-life impact of the property market backlog

We surveyed of 3,717 people who were caught up in the property market backlog, and found that those who have seen their property purchase delayed have been impacted in a number of ways.

(If you aren't up-to-speed on the current market backlog and how the Government's stamp duty holiday has played into it you can read our 2-minute explainer here).

Stress, and alternate living arrangements

68% of those who have been delayed stated it has added stress to an already stressful life experience, while a notable 34% of delayed homebuyers have had to make alternative living arrangements because of the backlog.

Fall-throughs and price-hikes

24% have seen their sale fall through as a result of the current market backlog, while 35% have had to increase their offer just to keep the seller from pulling out. (If you're a seller who's had a buyer pull out, remember that we buy any house - meaning we can step in and repair your chain quickly).

Keeping the faith

Stamp Duty Saving Article. An image of the words "Tax Free" written on a chalk board, with a calculator beside it.

However, the majority continue to keep the faith that they will complete before the end of March.

When asked what they'd do to secure the stamp duty saving, 69% stated that they would carry on as normal and hope to complete in time.

14% said they'd buy a more affordable property if it meant completing in time, with 9% stating they would buy a more expensive property.

For those who miss the deadline...

39% would have to withdraw from their purchase

When asked what they would do if they do miss the deadline, 39% stated they would cancel their purchase, while a further 27% said they would have to borrow more money to pay for the stamp duty.

45% would pay the stamp duty if it meant completing now

Despite remaining largely hopeful about completing in time, 45% of those asked said they would pay full stamp duty costs on their purchase if it meant they could complete now and avoid the market backlog. This is despite the fact that they may still complete in time to secure a saving.

27% of those asked regret their decision to buy and, had they known, they would have waited until after the market backlog had cleared before buying a house.

Analysis: What does this mean for the housing market - and what happens next?

As with many hastily thought-out government rescue plans, the stamp duty holiday has done an outstanding job of fuelling demand, while unfortunately neglecting how the market will actually deal with such an uplift.

Although the idea of a stamp duty saving would have been a tantalising one, many buyers are now finding themselves stuck in market limbo, facing more stress, long delays, temporary living arrangements, or having to place a higher offer to hold onto their purchase... All for a few thousand saved in tax.

But how real is that saving anyway? The incentive has driven property prices to new highs - so it's actually arguable that the stamp duty saving is actually costing homebuyers more, rather than saving anything when it's all said and done.

A dated system exposed (again)

Even worse, the market backlog has been enough to cause purchases to fall through, with even more potentially due to pull out if they do miss the deadline.

So regardless of what happens with Stamp Duty, the strain that the "stamp duty holiday" has placed on the UK's housing market exposes our archaic system again. Hopefully this may be a driver for change in the future... Although we've said that about a lot of different things for decades now - and still nothing's really changed.

In fact, this year has driven more enquiries than ever before for our "buy my house " service, which home sellers typically use when the traditional property market is failing them.

Sellers seeking speed

At Yes Homebuyers, we’ve seen the current backlog spur a flurry of enquiries from sellers caught up in the jam.

Some have been financially dependent on their sale completing before the end of March, but most just want to sell their home quickly and easily, and have the stability of a concrete timeframe in which they can sell. Ultimately, our service does this: it allows home sellers to skip the queues entirely. By doing so, they can move forward with their onward purchase.

See data & sources

Survey of 3,717 current UK homebuyers carried out by Find Out Now (January 22nd 2021).

IN THE NEWS

Browse coverage of this news piece

Our research, guides and commentary are picked up weekly by journalists at national and regional news outlets. See where this one has been covered so far.

January 27, 2021
PRINT ONLY
Stamp duty holiday warning: Buyers stuck in 'market limbo' as 39% vow to cancel purchases
January 27, 2021
PRINT ONLY
MPs to discuss petition to extend stamp duty holiday
January 29, 2021
PRINT ONLY
UK property sales could fall drastically if buyers don't complete by the stamp duty deadline
January 27, 2021
PRINT ONLY
UK property sales poised to fall off a cliff if buyers miss stamp duty holiday deadline
February 1, 2021
PRINT ONLY
Nearly half of buyers would pay full stamp duty to avoid the transaction falling through
January 28, 2021
PRINT ONLY
Parliament to debate call to extend SDLT holiday extension
January 27, 2021
PRINT ONLY
39% of buyers plan to pull out if they miss the stamp duty deadline, with 45% willing to pay in full now to skip the market backlog
January 27, 2021
PRINT ONLY
45% of buyers would pay full stamp duty to skip market backlog
January 27, 2021
PRINT ONLY
39% of buyers plan to pull out if they miss the stamp duty deadline, with 45% willing to pay in full now to skip the market backlog
January 27, 2021
PRINT ONLY
Almost half of buyers would pay full stamp duty to skip market backlog
January 27, 2021
PRINT ONLY
Almost half prepared to pay full stamp duty to skip backlog
January 30, 2021
PRINT ONLY
Mansion Global Daily: Business Booming in Birmingham, Low Housing Stock Pushing up U.S. Property Prices, and More
January 27, 2021
PRINT ONLY
Warning on Stamp duty holiday: 39% of buyers stuck in 'limbo' vow to cancel purchases
January 27, 2021
PRINT ONLY
39% of buyers plan to pull out if they miss the stamp duty deadline, with 45% willing to pay in full now to skip the market backlog – CCR

A BIT ABOUT US...

Selling your home to Yes Homebuyers

  • Yes Homebuyers buy your home directly from you so you can sell your house fast and avoid waiting around to find a buyer on the regular market. 
  • We offer flexible timeframes to suit you and on average, complete a sale within 30 days. 
  • Yes Homebuyers' quickest completed purchase was made in six days. 
  • We guarantee the price we will pay, unlike some buying platforms who reduce their offer shortly before completion.
  • There are no fees or costs involved and we cover all legal fees involved.
  • There are no contracts or tie-ins even if you accept an offer, and no viewings to take care of.

IN THE NEWS

Latest Insights

We share our experts' weekly research articles free of charge.

Timely insights and analysis from our experts

Covering today's most important property topics

Featured weekly in national and regional news

As featured in

...AND MANY MORE

FREE VALUATION
No Obligation

Ready for a faster house sale?
Let's get started.

Get An Offer