As we move closer to the all-important spring property market, we are pleased to report a noticeable uplift in activity, with more viewings taking place and sales being agreed.
That said, the market remains highly price-sensitive, and buyers are proceeding with caution. A key factor behind this hesitation is ongoing speculation around stamp duty. With uncertainty over whether changes may be introduced, many buyers and sellers are understandably pausing before making big financial decisions. We are seeing this first-hand.
How Stamp Duty is affecting home movers
Several of our clients have seriously considered moving home, often to be closer to family or to suit changing lifestyle needs. However, when they weigh up the total cost of moving, including Stamp Duty, legal fees, removal costs and estate agency fees, many conclude that the overall expense is simply too high. As a result, they decide to stay put and wait for a more favourable time.
Why this impacts the wider economy
In situations like this, everyone loses out:
- Sellers delay moving
- Buyers miss out on available homes
- Estate agents lose transactions
- Solicitors and removal companies see reduced work
And, ultimately, the Treasury receives no Stamp Duty at all As one of my most respected former bosses used to say: “Would you rather have a percentage of something, or 100% of nothing?”
The housing market underpins a huge proportion of the wider economy, and any slowdown has a knock-on effect across multiple industries.
Looking ahead
We are also hearing from major developers that many buyers are holding off until there is greater clarity around government policy and the future of Stamp Duty. While there have been suggestions from opposition parties that Stamp Duty could be reformed or removed entirely, history tells us that policy promises do not always translate into action. For now, the market continues to function, but with caution, sensitivity to pricing and a strong desire for certainty.
If you are looking to sell your property, please call us on 01223 928220, send us an email or complete our enquiry form to request a no-obligation valuation.