Looming stamp duty changes are likely to cause conveyancing chaos with Rightmove predicting a legal log-jam as buyers and sellers scramble to complete their purchase in time.

Although many first-time buyers in lower-priced areas won’t be affected at all by the changes due to the availability of stamp duty free homes, those looking at buying a home between £500,001 and £625,000 could lose £11,250 in costs if they miss the deadline.

London is likely to see the biggest log-jam of first-time buyers trying to complete before March 31st with 28% more first-time buyers in the capital currently going through the completion process than at this time last year, more than any other region.

STAMP DUTY DEADLINE

Colleen Babcock, property expert at Rightmove, says: “The upcoming stamp duty deadline in England remains a key talking point and while some movers may not be affected at all, others will be more severely impacted.

“We’ve previously suggested reforms such as regional variations in stamp duty charges to try and address some of the inequities in the current system.”

CONVEYANCING LOG-JAM

And she adds: “With the predicted conveyancing log-jam likely to cause some buyers to miss the deadline and end up paying more tax through no fault of their own, it would seem justifiable for the government to announce a short extension before the end of March.”

The extremely lengthy average time to complete a property transaction is still around five months, meaning that the typical mover has been working against the clock since November to complete before the end of March and beat any stamp duty increase.

And as the stamp duty deadline looms, the latest snapshot of the transaction pipeline shows that more than 550,000 homes are currently going through the completion process, 25% more than at this time last year.

FRUSTRATING

Babcock adds: “The lengthy and frustrating completion process means that the average mover has had to have one eye on the clock since November to ensure that they complete before the stamp duty deadline.

“Beyond the deadline, agents report that underlying market activity remains positive, and that they don’t expect a major drop-off in activity from April, as the financial impact on many movers is smaller than previous deadlines.”

NO SURPRISE

Emma Hall, key relationship director at conveyancing panel manager Movin Legal, says: “The predicted log-jam in the conveyancing process should come as no surprise to savvy buyers and sellers. We’ve gone through stamp duty change periods before – the last being during the pandemic.

“Unlike 2020 solicitors are now ‘back in the office’ and you would think that would help ease the situation. However, since that time countless staff have left the industry and recruitment to replace them is both ongoing and tough.”

ACROSS THE LINE

She adds: “Both buyers and sellers with deals in the pipeline already should be able to get them across the line before March 31 deadline.

“Those expecting a speedy completion after that date are still likely to face delays.

“Another cause of concern for many solicitors is that the government’s new housing plans aren’t compatible to the resources available which will only add further pressure to a system already buckled.

“One of the benefits of working with a panel manager such as Movin Legal is that we can quickly identify the capacity of our Solicitors as they work to strict service level agreements (SLAs) working with our Introducers to get the transactions over the line.”

CONSIDERABLE INCREASE

Marc von Grundherr, director of London agent Benham and Reeves, says: “As of 1st April, the average London first-time buyer is set to see the stamp duty owed on their purchase increase by around £6,000-£10,000, so it’s a considerable increase in cost and one that is, of course, in the minds of those currently progressing a purchase through to completion.

“However, with the deadline coming so swiftly after the Autumn Budget, many buyers are already progressing with their plans to purchase on the basis that they may well have to pay this additional cost, and so we haven’t seen much turbulence in the form of buyers pulling out.

“There has been some further negotiation with respect to offers submitted to try and alleviate the increase in stamp duty costs incurred but the vast majority of buyers are proceeding as planned.”

NOT NATIONWIDE

And Andrew Tucker, Joint Head of Residential Sales and Partner at Bidwells, adds: “Many will have been rushing to get deals over the line before the rise in stamp duty comes into effect this Spring. It won’t have been a nationwide phenomenon as the impact of changes depend greatly on location.”

AVERAGE PROPERTY PRICE RISING

Elsewhere Rightmove reports that the average price of property coming to the market for sale has risen by 0.5% this month (+£1,805) to £367,994.

After a fast start to the year which saw average asking prices rise by more than usual, February’s price increase is more subdued, below the longer-term average of +0.8%.

This month’s lower price trend appears to be both a proactive measure, recognising higher costs for some buyers with England’s looming stamp duty deadline at the end of March, and a reaction to the record number of sellers who came to market early in 2025.

The average number of available homes for sale per estate agency branch continues to run at a 10-year high, reducing sellers’ pricing power.

REGIONAL TRENDS