The UK property market is heading towards a period of significant turbulence as the looming stamp duty deadline threatens to create widespread delays in the conveyancing process.
Rightmove warns that a legal logjam is imminent, with buyers and sellers scrambling to complete transactions before the March 31st cut off.
While many first-time buyers in lower-priced areas remain unaffected due to stamp duty exemptions, those purchasing homes priced between £500,001 and £625,000 could face an additional £11,250 in costs if they fail to meet the deadline.
London, in particular, is expected to see the most congestion, with a 28% increase in first-time buyers currently navigating the completion process compared to the same period last year.
UNDER PRESSURE
Colleen Babcock, property expert at Rightmove, says: “The upcoming stamp duty deadline in England remains a crucial talking point. While some buyers may be unaffected, others face a significant financial burden. We’ve previously advocated for regional variations in stamp duty charges to create a fairer system.”
Babcock further stresses the need for government intervention: “With a predicted conveyancing backlog, some buyers may miss the deadline through no fault of their own and be forced to pay higher taxes. A short extension before the end of March would be a reasonable step.”
As the deadline looms, new data shows that more than 550,000 homes are currently in the completion process – a 25% increase compared to this time last year. The backlog is exacerbating delays and intensifying concerns within the industry.
STAFFING SHORTAGES
Emma Hall, key relationship director at conveyancing panel manager Movin Legal, says: “Savvy buyers and sellers should not be surprised by this predicted logjam. We’ve navigated similar stamp duty changes before, most notably during the pandemic.”
However, she notes a key difference this time around: “Unlike 2020, solicitors are back in offices, which should theoretically improve efficiency. However, staffing shortages across the sector have created a bottleneck, making it increasingly difficult to meet demand.”
Hall advises those with transactions already in progress to push ahead swiftly but warns that post-deadline completions will still face delays: “The government’s ambitious housing plans are outpacing available resources, adding further strain to an already overstretched system.”
