Estate agents across England are voicing concerns about a potential market correction following the expiration of current Stamp Duty Land Tax (SDLT) relief thresholds on 31st March. While buyer activity has surged in recent months, many agents are bracing for a slowdown in transactions and possible price adjustments in the aftermath of the deadline, according to a survey by property platform GetAgent.co.uk.
Buyer activity soars ahead of stamp duty deadline
The announcement during the Autumn Budget that current stamp duty relief thresholds would not be extended has triggered a spike in buyer interest. The survey by GetAgent.co.uk revealed that 47% of estate agents have observed a heightened sense of urgency among buyers eager to complete transactions before 1st April to benefit from the tax savings.
Co-founder and CEO of GetAgent.co.uk, Colby Short, explained, “The government’s decision not to extend current stamp duty relief thresholds has certainly spurred an increase in buyer activity, with those who may have previously been on the fence now eager to complete before 1st April to secure a saving.”
Interestingly, despite this rush, only 15% of agents reported buyers offering above asking prices to expedite purchases. This suggests buyers are maintaining caution and avoiding overpaying, helping prevent the market from overheating.
Concerns over market correction
While the increased activity is good news for the market in the short term, nearly half of agents surveyed (47%) anticipate a drop in transaction levels after the stamp duty deadline passes. Additionally, 45% expressed concern that house prices might experience a temporary dip as demand cools.
A significant 38% of agents also fear a rise in fall-through rates, as some buyers may fail to complete their transactions before the tax relief ends, particularly in cases involving tight timelines or unforeseen delays.
Colby Short added, “A heightened level of buyer activity will inevitably drive both transaction volumes and house prices upwards, leaving many agents reasonably concerned about a potential market correction once the deadline passes.”
However, Short reassured stakeholders that any adjustment is unlikely to be severe, stating, “Of course, a correction is certainly not a crash, and so whilst we may see a momentary dip in activity during the second quarter of this year, we expect the market landscape to steady and for any correction seen to be short-lived.”
Short-term activity, long-term stability
The survey also found that 47% of agents anticipate stronger-than-usual activity during the first quarter of 2025, as buyers rush to complete deals before the SDLT changes take effect. For landlords, this heightened activity could present opportunities to secure competitive sales or leverage demand to expand their portfolios.
While concerns about a potential cooling-off period post-deadline remain, experts like Colby Short emphasise the resilience of the UK property market. “The strong fundamentals of the housing sector, including ongoing demand and a lack of supply, should ensure the market remains stable in the long term,” he concluded.
