Shock as 25,000 first time buyers will miss tax deadline

Rightmove estimates that 74,000 property buyers in the process of completing purchases, including 25,000 first-time buyers, will miss the upcoming stamp duty deadline. This could result in additional tax costs of £142 million and may lead some buyers to withdraw, potentially increasing pressure on the rental sector.

The property market remains active, with sales agreements 9% higher and new sellers 8% ahead of the same period in 2024. However, persistently high mortgage rates, currently averaging 4.74% for a five-year fixed rate, are dampening optimism.

Rightmove highlights the challenges posed by economic uncertainty and a log-jam of 575,000 transactions in the legal process. The company also supports efforts by the mortgage regulator to simplify lending, though immediate benefits could be achieved by lowering mortgage rates. Calls for a short extension to the stamp duty deadline remain hopeful but uncertain.