With a top-line saving of £15,000 it might seem like a no-brainer to attempt to beat the June deadline and qualify for the stamp duty holiday.
But buying property in a hurry is a recipe for disaster and there is also the possibility that the rush to take advantage of the tax break is artificially increasing prices, so anything you save on stamp duty you will lose on your sale price.
Mathew Loach, regional director for London at Yopa, thinks London first-time buyers need to keep calm and remember that they will still enjoy stamp duty breaks after the holiday on purchases up to £300,000, meaning even if they spend more than that, the bill will be modest.
“For other home buyers, if you’ve not already had an offer accepted and made good progress on the paperwork, you’re probably too late to beat the June deadline — there’s no point jumping into the market now and expecting to complete by the end of June,” he said.
Beyond the tax holiday, Loach suspects prices will stay relatively stable.
“We believe that the lifting of Covid-19 restrictions combined with people’s reassessed post-pandemic housing needs, the “accidental savings” that many have made over the past year, and the desire for a post-pandemic fresh start will keep the market frothy for at least for the rest of this year,” he said.
Grant Bates, director at Hamptons estate agents in Islington, agrees buyers should “retain perspective” and suspects prices for mainstream London homes will fall slightly after the holiday ends.
But he doesn’t necessarily think the prospect of an imminent price readjustment is a disaster for current buyers, given how low interest rates are.
“Even if you pay a premium for your home, would you rather have that £15,000 in your bank and take on a marginally higher monthly payment?”
