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'Seven in 10 Brits' think stamp duty holiday should be extended

Abigail Fenton
·Writer
·3-min read
The cost of insuring your home against  has shot up 27% in three years. (Terrah Holly/Unsplash)
Nearly two thirds of prospective buyers are in the market because of the stamp duty holiday. Photo: Terrah Holly/Unsplash

Seven in 10 Brits think the UK government should extend the stamp duty holiday, as they may only have until the end of the month to find a property if they want to complete their purchase in time.

About 71% of Brits told MoneySuperMarket they would like the government to extend the scheme beyond March 2021 so they can take advantage of it.

Nearly two in three (63%) prospective UK buyers are in the market as a result of the stamp duty holiday, according to the survey of 2,000.

But with the average purchase taking 123 days, most buyers only have until the end of November to find a house and submit a mortgage application in enough time to take advantage of the scheme, the research found.

Should it not be extended, six in 10 said they will intentionally change their buying plans, with 24% saying they would withdraw from the market completely.

READ MORE: Brits can't afford to buy their first home until 34, study finds

The policy also had an impact on the selling decisions of home-owners, with nearly six in 10 (57%) considering placing their home on the market this year, despite not previously doing so prior to the announcement in July.

The research found buyers are expecting to spend an average of £347,000 ($457,000) on a new home and make an average stamp duty saving of £5,377.

Londoners expect to spend the most on their new property, at about £467,213. Meanwhile, those in Northern Ireland expect to pay the least, at about £180,400.

Millennials are most likely to take advantage of the scheme, with 71% of 24 to 35-year-olds either purchasing or looking to purchase a property since it was announced.

Meanwhile, 35 to 44-year-olds anticipate spending the most on their new home, at about £393,100. They are closely followed by 25 to 34-year-olds, who plan to spend about £369,700.

READ MORE: Coronavirus — Brits 'paying off extra' on mortgage payments in lockdown

The “bank of mum and dad” also continues to support first-time buyers, with 29% admitting they have relied or will rely on help from family members to pay the deposit on their new home.

“As our research shows, the stamp duty holiday has proven successful in attracting both buyers and sellers to the property market at this difficult time for the economy,” said Emma Harvey, director of mortgages at MoneySuperMarket.

“It’s clear that many would like to see the scheme extended and we believe the government needs to put in place longer term support for the housing market.

However, she added: “While the stamp duty holiday has brought buyers to the market and lenders have never been busier, challenges still exist for those seeking to buy their first home – not least with regards to the availability of appropriate mortgages.

“This is why the government is proposing new measures to increase the availability of mortgages for those with a 5% deposit, and we look forward to seeing these proposals in greater detail.

Watch: What do stamp duty cuts mean for buyers and house prices?