The looming deadline of 31 March for the expiration of the stamp duty discount is sparking urgent calls for an extension from various quarters. The implications of this deadline are significant, especially for first-time buyers and home movers who are currently in the midst of their purchasing processes.

A recent analysis by Rightmove has highlighted the potential financial impact on more than 25,000 first-time buyers who are likely to miss the opportunity to save on stamp duty because their purchases will not be completed before the deadline. These buyers, who are already navigating the challenging process of securing their first homes, face the added pressure of increased costs if the stamp duty discount is not extended.

There are an estimated 74,000 home buyers and home movers in England who are poised to miss the deadline. While the government has provided some relief to first-time buyers of homes priced at £300,000 or less, who will continue to pay no stamp duty as of 1 April, those purchasing homes priced between £500,001 and £625,000 are set to be the most adversely affected. These buyers will face an additional £11,250 in costs, which could pose a significant financial burden.

The collective impact of the impending deadline could result in an extra £34 million in costs for first-time buyers alone. This scenario underscores the need for immediate government intervention to mitigate the financial strain on these buyers. Rightmove, a leading property website, is at the forefront of the call for the government to extend the stamp duty deadline. The organization argues that a brief extension could make a considerable difference for the 74,000 purchasers who are at risk of paying more tax simply because they are slightly delayed in completing their transactions.

The call for an extension is not just about numbers, it's about the real-life implications for thousands of individuals and families. Buying a home is one of the most significant financial decisions and commitments that people make in their lives. The process is often lengthy and fraught with challenges, from securing mortgages to navigating legal requirements. The additional financial burden of increased stamp duty could be the tipping point that makes home ownership unattainable for many.

First-time buyers, in particular, are often working with tight budgets and stretching their finances to the limit to secure a home. The prospect of an additional £11,250 in costs could deter many from proceeding with their purchases, potentially leading to a slowdown in the housing market. This outcome would not only affect individual buyers but could also have broader economic implications.

Rightmove's call for a deadline extension is rooted in the understanding that the property purchasing process in England can be protracted. Even buyers who are well-prepared and proactive can face delays due to factors beyond their control, such as processing times for legal documents and mortgage approvals. A short extension to the stamp duty deadline would provide a crucial buffer for those who are close to completing their transactions but need a little more time.

The government has a unique opportunity to demonstrate its support for home buyers during this critical period. By extending the stamp duty discount deadline, policymakers can offer tangible relief to thousands of first-time buyers and home movers, helping them to achieve their goal of home ownership without facing additional financial hurdles.

The call for the UK government to extend the stamp duty discount deadline is both urgent and justified. The potential financial impact on first-time buyers and home movers is significant, and a brief extension could provide much-needed relief. As the deadline approaches, the government must consider the broader implications of its decision and act in the best interests of those striving to secure a place to call home.

Colleen Babcock, Rightmove property expert, remarked, “We expect a rush to complete close to March 31st as first-time buyers and home-movers try to avoid paying extra in tax. Our numbers show how there is a relatively small, but disproportionately impacted group of first-time buyers who will be caught out by the changing thresholds, highlighting some disparities in the way the current system works. With 74,000 people only just set to miss the deadline, in part because of the extremely lengthy completion times in England, we think it would make sense to grant a short extension to the deadline and help these movers, rather than have them face higher charges when they complete later in April.”