Four out of five (81%) homebuyers are confident they won’t see a drop in the value of their home despite the looming final stamp duty deadline, according to a study from Barrows and Forrester.

The estate and lettings agent surveyed over 2,000 UK homebuyers who have purchased in the last six months to see how the current stamp duty holiday had impacted their purchase.

The nil rate band for Stamp Duty Land Tax (SDLT) tapered from £500,000 to £250,000 at the end of June, and will revert back to the standard amount of £125,000 at the end of September.

While high demand has seen average house prices climb substantially in the past year, Barrows and Forrester suggested that many buyers believe they’ve still saved money on their purchase as a result of the tax reprieve – despite some sellers overpricing to take advantage.

The lettings agent asked buyers if they thought they had paid a higher asking price to secure their home due to saving on stamp duty, and 81% of respondents believed they hadn’t, although nearly one in five did think their seller had ramped up their asking price due to the tax saving they would make.

Barrows and Forrester managing director, James Forrester, said the stamp duty holiday had “certainly helped kick start the market”, and suggested market activity will continue past the final deadline.

“We’ve seen an overwhelming level of buyer demand and strong house price growth pretty much since it was introduced,” Forrester commented.

“There have been some teething issues such as the lengthy increases to selling times but overall, buyers have benefited and the majority feel they have paid a fair price and made a saving at the same time.

“This positive market sentiment looks set to remain beyond the final deadline and while some have been quick to call the demise of the market, we should see a strong level of market activity and house price growth beyond the end of September and well into the new year.”

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