Holiday Homebuying Could Trigger House Price Slide

With Stamp Duty Land Tax (SDLT) relief ending on 31 March 2025, the housing market is buzzing with activity. According to a survey, 93% of active buyers are rushing to finalise their purchases before the deadline. Many are even continuing their house hunts during the holiday season.

The survey found that 82% of buyers plan to keep searching until Christmas, and 74% are willing to keep looking throughout the festive period. This surge in activity is sparked by the desire to take advantage of SDLT relief before the tax thresholds increase.

The SDLT Deadline: A Powerful Motivator

Upcoming changes to SDLT are pushing buyers to act fast. The changes to SDLT planned for March 2025 are a strong incentive for buyers. He notes that many are so eager to benefit from the relief that they are continuing their search even during the holiday season.

For sellers, this is a great chance. With so many motivated buyers, now is an excellent time to sell as this demand is expected to stay heated into early 2025.

How Buyers Are Charting the Rush

In a rush to meet the deadline, buyers are trying different ways to speed up their purchases. The most common method is browsing online property listings, attending viewings, making offers, negotiating prices and working with solicitors to close the deal. Some are even willing to move homes just to finalise a purchase in time.

The survey found that 71% of people would not have felt this urgency if the government had extended SDLT relief in the Autumn Budget. Instead, they would have delayed their plans until the New Year, showing how much the tax incentive is influencing buyer behaviour.

Competition Heats Up: Overbidding in the Market

The race to finalise deals has made it harder for buyers. Another survey, different from the one discussed above, which focuses on homes for people above 50, found that 44% of buyers want to complete their purchases before 1 April 2025.

To secure a property, 11% said they offered more than the asking price, while 57% were willing to pay slightly over the listed amount. Though this bidding war might push prices up for now, it could create problems later.

The Risk of Market Instability and Price Deflation

If many buyers back out after missing the SDLT deadline, the housing market could run into trouble. Too many homes for sale and fewer buyers could cause prices to fall quickly.

Experts are warning that this could lead to price drops as deals fall apart and buyers lose interest. Buyers paying more than the asking price shows how eager buyers are but also makes the market unstable.

He argues that if buyers miss the deadline and rethink their finances, we could see widespread delays and cancelled deals, likely pushing house prices down.

Conclusion

The rush to beat the SDLT deadline has caused a short-term housing boom, but the future may not look as bright. Sellers are benefiting from high demand and rising prices, but there is a risk that deals could fall through, leading to lower prices.

For buyers, acting fast comes with the risk of paying too much in a hot market. Those who miss the deadline might rethink their plans or leave the market altogether.