Stamp duty holiday: Warning buyers who miss June 30 deadline may have to pull out of purchases in Sheffield

Buyers who miss the June 30 cutoff may have to pull out of purchases, putting chains of sales at risk.

Homebuyers will be desperately hoping they can complete their purchase before Wednesday night, because if they don’t they face having to find as much as £12,500.

Nicola Spencer managing director of estate agent Spencer, said the deadline was making some clients nervous.

"We’ll find out on deadline day if they stand by the deal and we have got some buyers who are nervous going to deadline,” she added.

"I’m sure the lawyers will be working late. But if the funds haven’t been requested by now it will be too late. The banks are pulling their hair out at the situation.”

Nicola said the biggest issue in the Sheffield property market was a lack of stock but agreed stamp duty was a factor.

"We’re just trying to get however many deals through where people have said they need to be done by the end of stamp duty,” she said.

"The big issue is there are so few properties for sale in Sheffield. If people have to move they will still do it because they have no option so they will stick with a transaction.

"There are a handful who may pull out because if you can’t afford a deal, you’ve no choice.

"But I hope they don’t because it is not good business practice or ethical.”

The stamp duty holiday was introduced in England and Northern Ireland by the chancellor, Rishi Sunak, in July 2020 to kickstart the then struggling housing market. Buyers pay no stamp duty on the first £500,000 of the purchase price, provided the purchase completes before the end of June.

The threshold at which stamp duty begins in England and Northern Ireland is falling to £250,000 on July 1. In September it returns to the pre-pandemic level of £125,000. First–time buyers can purchase homes costing up to £300,000 without incurring stamp duty from July 1.

Solicitors have called for the government to amend the deadline to the exchange of contract, rather than completion, to ease pressure on those involved in the house-buying process.