The Stamp Duty Deadline Has Passed – But the Pressure on Conveyancers Hasn’t

This sharp increase in transactional urgency placed an exceptional strain on legal professionals tasked with navigating an already complex process under heightened time constraints. The sheer volume of cases being pushed through during March left little room for delay or error. In many cases, completions occurred within hours of the deadline, following weeks of accelerated effort behind the scenes.

A notable challenge throughout this period was the widespread lack of understanding around the timelines and dependencies involved in residential property transfers by prospective buyers. Many clients underestimated the number of third parties involved in a typical transaction—each with their own timescales and priorities—and continued to approach us well into March hoping for pre-deadline completion. Managing their expectations was important, particularly when delays originating from surveyors, lenders, or local authorities usually made it impossible to move as quickly as they wanted.

Despite predictions that April would bring a slowdown following the pre-deadline spike, the anticipated drop-in market activity has yet to occur. The level of new instructions has remained consistent with previous spring trends, defying expectations of a post-rush dip. Many buyers entering the market now appear to have factored in the new tax obligations and are proceeding with purchases accordingly.

For those not purchasing their first home, the SDLT increase has typically meant an additional cost of around £2,500. While not insignificant, this adjustment appears to have had limited deterrent effect, particularly in the current environment where housing demand remains strong and stock remains constrained in many areas.

It remains to be seen what effect, if any, the new thresholds will have on property values in the longer term. Comparisons are already being drawn to the post-Covid SDLT holiday, which spurred a rapid rise in prices followed by a correction. So far, prices have remained stable, although lending institutions are exercising greater caution in their valuations. In some cases, this has led to price renegotiations, adding another layer of complexity and potential delay to transactions.

Any potential adjustment is likely to be most pronounced at the lower end of the market, where affordability is under the most pressure. I’m confident that the increased caution we saw among lenders in the lead up to the April deadline, may offer some protection against the risks of overvaluation and negative equity, particularly for buyers already stretching their budgets.

Wider economic uncertainties and fluctuating confidence levels is likely to continue to influence market behaviour in the coming months. With the threshold for SDLT now reset at £125,000 for all buyers, and a less generous relief available to first-time buyers, there is potential for greater price stability and more realistic valuations moving forward. Whether this leads to more sustainable growth or a further reshaping of buyer behaviour remains to be seen.

One thing is clear: the property sector continues to operate in a climate of constant flux. For conveyancers and other professionals navigating these transitions, flexibility and resilience remain essential attributes. The Stamp Duty changes may have passed, but their ripple effects are far from over.

Robert Habbitts – Residential Conveyancer at Parfitt Cresswell Solicitors