Brokers and conveyancers say some customers have been given “unrealistic expectations” that they can complete before the stamp duty deadline on 31 March.
The stamp duty threshold is due to change from £250,000 to £125,000 and the first-time buyer limit will be lowered from £425,000 to £300,000.
Chris Sykes, technical director at Private Finance, said there seemed to be “widespread unrealistic expectations” among buyers about completing house purchases before the deadline.
He continued: “Alarmingly, we’ve heard reports of some estate agents telling clients that meeting the deadline is possible ‘if everyone works hard’– a claim that is both unrealistic and unfair to consumers, who rely on industry experts to manage expectations and provide accurate information.
“These misconceptions can be costly for borrowers who begin their house buying journey only to miss the deadline and face either unexpected higher tax costs or the need to withdraw from purchases, potentially triggering chain collapses.”
Sykes said the misinformation was not just being spread to first-time buyers but spreading to buyers in a chain, where transaction times can be “naturally extended” due to the greater number of parties in the process.
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Rightmove’s figures indicate that the average time to complete a home purchase is 163 days – just over five months.
Recent research from the firm also shows that around 550,000 homes are moving through the completion process, a quarter up on the same time last year. It added that London first-time buyer transactions were up 28% on last year.
The company has also estimated that around 74,000 homeowners could miss the stamp duty deadline, with 25,000 of them being first-time buyers.
“If expectations aren’t managed properly, many buyers could find themselves in difficult financial situations when reality sets [in] further into March,” Sykes said.
Brokers canvassed by this publication said they were being proactive in their communication about stamp duty changes and the possible impact on transactions and transaction times since last year.
David Hollingworth, associate director for communications at L&C Mortgages, said that, in most cases, stamp duty changes would not be the difference between buying and giving up a purchase and any first-time buyers “may suffer little or no impact”.
However, there will be increased pressure in the run-up to the deadline and this could lead to a lull in the aftermath, he warned.
“We’ve worked hard to manage customer expectation[s], flagging the change as early as possible. We’ve been quoting the higher post-March stamp duty bill since the beginning of the year in a bid to help buyers plan for the worst case and hope for the best,” Hollingworth noted.
However, he said that, anecdotally, there will be some agreeing purchases now that “hope to meet the deadline”.
Hollingworth continued: “Honesty is the best policy, and although in some rare cases it may still be possible, the chances are that the timeline is highly unrealistic.
“The biggest pressure is likely to fall on conveyancers. As the big day approaches, anxious customers are only likely to pile more pressure on. Higher call volumes from foot-stamping customers are ironically only likely to slow things down.
“There’s only so much that can be controlled if third parties are dragging their feet, but customers can help by being prompt with their response to requests. There’s no easy solution, but good communication will be vital to help get as many transactions through in time,” he said.
‘Transaction times’ are ‘significant issue’
Brokers have been consistently telling this publication that they have been informing customers about stamp duty changes for several months and have been very clear about transaction times and the possibility of not completing on time.
Adam Rockall, director and mortgage and protection adviser at Pebbles Mortgage and Protection, said many first-time buyers were “pushing to complete before the deadline”.
“However, transaction times remain a significant issue. In the past, house purchases typically took eight to 12 weeks. Now, I’m seeing cases increasingly take three to six months and, in some cases, in excess of nine months, with a recent one taking 19 months.
“Due to the slower pace, it allows for more chances for setbacks to occur that endanger sale or purchase. Solicitors are under pressure, and while some delays are understandable, there’s frustration over those seemingly dragging their heels,” he said.
Sonya Matharu-Coxhill, founder and adviser at The Mortgage Atelier, said that, since the stamp duty changes had been confirmed, there was a “noticeable rise in activity” from first-time buyers as well as homemovers, and both were “keen to complete before the deadline”.
“The potential increase in costs makes a real difference, so naturally, they’re eager to get things over the line. That said, it’s so important to manage expectations. While I’ll always work towards a swift turnaround, and the aim is to complete before the change, there’s a lot at play – the legal process, property chains, and lender time frames all have to align.
“The best approach is to ensure funds are in place for post-31 March 2025 stamp duty, and if you complete before then, that’s a bonus,” she said.
Stamp duty deadline adding to ‘mental health pressures’
Jason Berry, group sales director at Crystal Specialist Finance and co-founder of the Mortgage Industry Mental Health Charter (MIMHC), said the stamp duty deadline was having an impact across the mortgage and property markets and was “adding to wider mental health pressures in our industry”.
He explained: “While the deadline does present opportunities, it’s also clear that many brokers are under increased stress, as they race to complete both residential and buy-to-let transactions before the rules change on 1 April.
“The psychological toll of working against tight deadlines is something that many of us are all too familiar with. The MIMHC’s recent research revealed that 62% of industry professionals already work more than 45 hours per week and 22% don’t get the minimum recommended sleep.”
Berry said the stamp duty deadline would mean brokers working longer hours to chase cases through, and this can lead to “elevated stress of juggling multiple cases [that] need to be completed urgently.”
“Inevitably, there will be some cases [that] don’t meet the deadline despite brokers’ best efforts, which will cause added distress to all parties involved,” he said.
Berry continued: “There are steps we can take to support brokers and try to prevent them burning out, such as encouraging early submissions to prevent bottlenecks, proactively managing expectations around valuation and conveyancing timings and providing alternative solutions such as bridging where appropriate.
“At times like this, it is more important than ever for brokers and lenders to collaborate, to communicate clearly and work together to fast-track the most sensitive cases. We need to encourage colleagues to work flexibly and take regular breaks, to have open conversations about stress and prioritise self-care alongside those professional responsibilities. After all, a healthy broker is a more productive broker – and that benefits everyone in the industry.”
Conveyancers ‘coping well’ but ‘unrealistic expectations’ putting them in ‘unfair position’
Conveyancers are often singled out as the part of the home buying process that is under the most pressure when it comes to a stamp duty deadline.
David Bridge, director and solicitor as well as head of conveyancing at Kiteleys Solicitors, said: “There is clearly pressure, as this affects all buyers and so impacts on all sales and chains. The pressure to work quickly outstrips our ability to do a detailed job and on staff morale when all sides are chasing, and duplicating the chases, so we sometimes feel we have to give the same update three or four times each day on one case – multiply that up and you get the picture.
“Each client feels rightly their case is special and that they should be the priority. I don’t feel it is as bad as last time, but we are still a month away.”
Nick Chadbourne, LMS’ CEO, said that, considering the high pipelines, “conveyancers are coping well, working towards pipeline movement and within good time frames to achieve positive customer outcomes”.
He continued: “But conveyancers are also experiencing a lot of pressure at the moment, since many customers are being advised that they can still complete before the deadline, setting unrealistic expectations and putting conveyancers in an unfair position.
“If we want to achieve quicker completions, the key is ensuring conveyancers receive what they need when they need it, and that the information is accurate. Then, they should be left to progress with cases without being hindered by inbound calls and update requests, which tend to only slow the process down.”
Chadbourne said the industry had navigated stamp duty deadlines before and “now, more than ever, we’re capable of dealing with this spike”.
