THE stamp duty holiday tax ends in June - home buyers have just 10 weeks to complete their sales to take advantage of the exemption.  

Home buyers have less than 10 weeks to complete their purchase if they hope to take advantage of the stamp duty tax holiday which ends on Wednesday, 30 June. 

With 70 days left before the extension deadline, MoneySuperMarket has shared their latest mortgage research to help inform buyers. 

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The average time to complete a property sale is around 77 days, just over the 70 day time frame remaining and this increases to 99 days for first-time buyers.

This means that many buyers in the early stages of a purchase will likely be in a rush to complete on their new home. 

The scheme was originally scheduled to come to an end in March but was extended to 30th June in the Chancellor’s March budget.

The decision sparked a 421 per-cent increase in mortgage enquiries on the MoneySuperMarket site and nearly two thirds of home hunters are in the housing market due to the scheme. 

The Argus:

There are less than 10 weeks to complete your property sale if you want to take advantage of the tax holiday (PA).

First-time buyers have been most likely to take advantage of the tax holiday - 25 to 34 year olds are the most likely to take advantage of it, with 71 per-cent having bought a home or claiming that they intend to do so as a result of its introduction.

Jo Thornhill, finance expert at MoneySuperMarket, said: “The stamp duty holiday extension has been hugely popular but those seeking to take advantage of it better hurry with the deadline now only ten weeks away.

"With the average home purchase taking 77 days to complete, many will be cutting it fine. However, if you’re chain free and have only just started looking, you should still have enough time if you act now."

Although the stamp duty holiday scheme is coming to a close, the Chancellor Rishi Sunak announced a 95 per-cent mortgage guarantee scheme which launched on Monday aimed to help people get on the property ladder.

Government’s 95 per-cent mortgage guarantee – situation improving for first-time buyers

The same research by MoneySuperMarket also reveals an increase in the number of 95 per-cent LTV mortgages on the market.

There are 70 deals currently available, up from 12 at the start of the year – a 483 per-cent rise - though still down substantially by 67 per-cent on the 214 deals that were available to home buyers in January 2020.

The Argus:

First-time buyers are still set to benefit from the new 95 per-cent mortgage scheme (stock)

MoneySuperMarket saw a 71 per-cent uplift in enquiries for first-time buyers looking to take out a 95 per-cent mortgage in the seven days between 12 April and 19 April when the announcement was made. 

Ms Thornhill said: “Our research shows that the situation for first time buyers is slowly improving: there are significantly more 95 per-cent LTV deals on the market than in January and, following the start of the government’s new 95 per-cent mortgage guarantee scheme on Monday, the availability of mortgages for buyers with a 5% deposit looks set to increase.

“While we welcome the government’s moves, there remains a long way to go if we’re going to see a reduction in the challenges that exist for first time buyers.

"We’d like the government to think about long term solutions for making home ownership a reality for more Brits, particularly those who think it is out of their reach."