According to the latest reports from Rightmove, searches for chain-free properties are up 110% from last year. The dramatic increase does not come as a surprise as convenience and efficiency are, now more than ever, two of the most important factors that buyers and sellers are facing ahead of the Stamp Duty Holiday ending later this year.
While Stamp Duty is usually applicable to all properties priced over £125,000, the current scheme has seen all properties priced £500,000 and below be completely exempt. The scheme has proved to be hugely popular and has helped to contribute to a boom in the property market.
The scheme, recently extended, is due to expire at the end of June, but the race to complete and get home purchases over the line is becoming all the more hurried. In addition to this, some property experts are predicting that the rush ahead of the deadline is expected to result in a fall in house prices in the periods following which only adds to the fire.
As such, the demand for no chain property has never been higher. As crunch time approaches, buyers and sellers are now looking for guarantees that they will be able to buy their dream house and sell their current property all before the end of June.
On average, the journey from putting your house on the market to completing and exchanging takes four months. But to suggest that the current circumstances are average would be dishonest. While some industry experts are expecting the market to remain strong as the nation gets used to Brexit, others believe that the end of the Stamp Duty Holiday could result in prices falling by up to 30%. An unpredictable property market and a potentially volatile economy, these guarantees are now harder than ever to ensure.
Our latest research, however, has shown that the average sale is now taking eight and a half months with most homes being viewed 18 times before an offer comes through. Although industry experts have warned of further potential delays, there are still some scenarios that lend themselves to the scheme; chain-free and vacant properties being two of the most notable.
In an average year, one in four chains break down at different stages but with the increased pressures and growing bottleneck of demand, 2021 is going to be far from average. Last year alone, Spring found this number to be much higher with 47% of homeowners, surveyed by independent research company Atomik Research, claiming to have had their chain break at some stage during the process.
As such, eliminating the risk of a chain break entirely could be the key to capitalising on this Stamp Duty holiday while it is still in effect.
There are a number of ways to reduce the risk of the chain breaking but the most effective and cost efficient is to utilise the assistance of a home-buying service such as Spring.
With the scheme ending in June, and then tapered in the interim, with standard stamp duty rates resuming October 1st, there is still enough time for our home-buying service to assist your home sale. Spring offer a guaranteed sale and can have the money in your account in as little as seven days, freeing you from the burden of a chain potentially breaking and set you up in a more attractive position ahead of buying.
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