Homebuyers are increasingly turning to property auctions to secure deals ahead of changes to stamp duty, latest data from auction specialists iamproperty reveals.
The firm has reported a 17.3% rise in properties sold via auction in the past three months, with bidding activity up by an impressive 33% compared to the same period last year.
The surge comes as the government prepares to halve the SDLT threshold from £250,000 to £125,000 on 1 April 2025.
The first-time buyer limit will also drop, from £425,000 to £300,000, a move that could add thousands of pounds to the cost of purchasing a home.
TAX DEADLINE
Jamie Cooke, Co-Founder of iamproperty, attributed the surge in auction activity to the looming tax deadline and growing consumer confidence in the auction process.
He says: “The changes to stamp duty have stimulated the market in a big way, and we’re seeing this reflected in our results.
“For many buyers, auction offers a fast and straightforward route to secure a property before the tax changes take effect. Unlike traditional private treaty sales, which can take six months or more to complete, auctions offer completion in just 56 days.”
CHANGING ATTITUDES
Cooke believes there’s a growing acceptance of auctions as a mainstream method for buying and selling property. According to iamproperty’s research, over one-third of people are open to using auctions, with this figure rising to 57% among younger buyers aged 18-34.
With the stamp duty deadline drawing closer, the appeal of auctions is likely to grow. The faster completion times and guaranteed transactions make auctions an attractive option for buyers seeking to avoid the additional costs of the new tax regime.
For many, it’s a race against time. As the April 2025 deadline looms, auctions are proving to be a crucial tool in the homebuyer’s arsenal, offering speed, certainty, and savings in an increasingly competitive market.
Cooke adds: “For estate agents, this shift is an opportunity to expand their services.
“By offering auction options, agents can help their clients complete transactions quickly, avoid higher taxes, and enhance their own profitability.”
