Homeowners are out of step with the potential drop in stamp duty in house prices
Despite a third claiming they would be dissuaded from selling if house prices fell after the stamp duty threshold was lowered, an overwhelming majority remain indifferent if a drop materializes.
Research by home buying platform YesHomebuyers found 83% were out of step with the cooling of house prices now that the original stamp duty deadline is about to expire.
When asked the same question about the second and final deadline expiring in September, 82% were indifferent to a potential market cliff-edge causing house prices to fall, with just 4% saying they were very worried.
Yes, buyers then asked if a drop in house prices would deter homeowners from selling, with 32% saying it would, although again, 68% would still hit the market regardless.
However, it is perhaps the cyclical nature of the real estate market that helps build homeowners’ confidence in the face of a possible fall in house prices. 87% said they had no plans to sell in the next two years, meaning any drop in house prices caused by the end of the stamp duty holiday is likely to be gone.
Only 7% plan to sell within two years, although 6% plan to sell in the next year.
Matthew Cooper, Founder and CEO of Yes Homebuyers, commented: “There is a good chance that a drop in house prices will occur after the stamp duty holiday has completely expired. After stimulating an unprecedented level of buyer demand for such a long period of time, it is only natural that this artificial house price bubble will burst once the stimulus is removed.
“This sparked such concern that the government attempted to soften the blow, not only by extending the stamp duty holiday itself, but by putting in place a staggered deadline to minimize the immediate impact on the market.
“The good news is that many owners remain indifferent, arguably because they are investing for the long term rather than on a profit and loss basis. Many also have no plans to sell anytime soon, either. it is likely that a market decline has been corrected by the time they do.
“However, those who plan to sell in the next six months may want to do so sooner rather than later, in order to reach current market values. That said, with significant delays affecting the market as well, the best chance of finishing before a drop in the price of real estate is to consider alternative options to sell your house quickly.