New analysis from Rightmove, the UK’s largest property website, reveals that an estimated 25,000 first-time buyers in England are set to miss the March 31st stamp duty deadline and will instead complete their purchases in April.
In total, nearly 74,000 home movers across England are currently in the legal completion process but are unlikely to finalize their purchases before the deadline. While the total number of transactions in progress is much higher, most of these buyers were never expected to meet the March 31st cutoff.
£142 Million in Additional Stamp Duty Costs
The financial impact of missing the deadline is significant, with an estimated £142 million in extra stamp duty payments at stake for those completing in April. Of this:
-
First-time buyers alone face an additional £34 million in costs.
-
Most home movers in England will see an extra £2,500 in stamp duty charges from April 1st.
-
First-time buyers purchasing homes priced between £500,001 and £625,000 are the most affected, with an added cost of £11,250.
Regional Impact: South East Hit Hardest
The South East is expected to have the highest number of buyers narrowly missing the deadline. As the second most expensive housing region in England, these buyers are likely to face higher stamp duty costs compared to those in other areas.
Conveyancing Delays and Calls for an Extension
With a surge of buyers trying to complete before the deadline, Rightmove warns of a conveyancing backlog, particularly affecting first-time buyers in London. The website is calling for a short extension to the stamp duty deadline to support the 74,000 home movers who are currently set to miss out.
How the Estimate Was Calculated
Rightmove’s estimate is based on homes marked as Sold Subject to Contract (SSTC) and the current average time to complete a home purchase, which stands at 163 days (just over five months). The analysis considers factors such as property type and location, with first-time buyer homes defined as two-bedroom properties or smaller, priced up to £625,000—the maximum threshold for first-time buyer stamp duty relief.
Without intervention, thousands of buyers who are only weeks away from completing could face unexpected financial strain, making the case for a deadline extension even stronger.
As home movers race to avoid unnecessary extra costs, Rightmove predicts a conveyancing bottleneck as the March 31st stamp duty deadline approaches, with buyers rushing to finalize their purchases.
Rightmove is urging the government to grant a short extension to support the 74,000 home movers who will narrowly miss the deadline and face higher tax bills through no fault of their own. This includes 25,000 first-time buyers, many of whom are already stretching their finances to step onto the property ladder.
Rightmove’s property market expert, Colleen Babcock, explains:
“We expect a last-minute rush as first-time buyers and home movers try to avoid additional tax costs. Our data highlights a relatively small but disproportionately affected group of first-time buyers who will be caught out by the changing thresholds, exposing disparities in the current system. With 74,000 people set to miss the deadline—partly due to lengthy completion times in England—it would be sensible to grant a short extension, ensuring these buyers don’t face unnecessary financial penalties for completing just weeks later.”
Info Obtained here
