Expert shares insight following the end of the Stamp Duty Holiday

The Stamp Duty Holiday officially ended on March 31st, meaning buyers who missed the deadline may now face higher costs. Estate agent Rachel Lansdell shares her insights on what this means for the housing market:

Rachel says: “The market is unlikely to see a drastic drop in property prices now that the stamp duty incentive has ended. The savings were relatively modest compared to past initiatives, and demand remains strong in many areas.”

However, the market saw a slowdown in new listings leading up to the deadline. Rachel explains: “January was busy, but February and March were quieter, as many sellers hesitated to list their properties. Now, with the deadline behind us, we expect more sellers to enter the market in the coming months.”

Negotiation & buyer behaviour in the post market

With fewer properties available, competition among buyers remains high. Rachel notes: “While sellers may not have been highly flexible on pricing before, the market is now adjusting, and we may see more room for negotiation.”

For buyers who are now facing standard stamp duty rates, careful budgeting is crucial. Rachel advises checking the government’s stamp duty calculator on gov.uk and considering all costs associated with purchasing a property, including solicitor fees, mortgage arrangement fees, and potential renovation costs.

First-time buyers still have access to incentives such as the Lifetime ISA (LISA), which can help towards a deposit. “The end of the holiday doesn’t mean there aren’t savings to be made elsewhere—buyers should explore all available financial support options,” Rachel highlights.

Lending and mortgage considerations

With mortgage rates and lending criteria remaining largely stable for now, the focus shifts to individual financial health. Moneyboat highlights that buyers who have used short-term loans, such as payday loans or high-cost short-term credit, may face increased scrutiny from mortgage lenders.

Impact on mortgage applications:

• Many high-street lenders consider short-term borrowing a sign of financial distress, which could result in higher interest rates or even rejected applications.

What to do if you have used short-term credit:

• Ensure all short-term loans are fully repaid before applying for a mortgage.

• Obtain a copy of your credit report to check for any potential issues.

• Consider consulting a mortgage broker to identify lenders who may be more flexible.

Looking ahead: What’s next for the housing market?

The slowdown seen in early spring is expected to reverse as more properties come onto the market. Buyer competition remains strong, which is helping to sustain property prices.

Rachel explains: “We expect a gradual rebound in activity as we move further into spring. Those looking to buy or sell should stay informed and proactive to make the most of emerging opportunities.”

With the return to standard stamp duty rates, strategic planning is more important than ever. Whether buying, selling, or considering financial options, understanding the market shifts will help navigate the post-holiday landscape effectively.