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One in five of FTB property deals fell through in the past year

Jessica Nangle

February 26, 2021

FTBs

Nearly one-fifth (19%) of first-time buyer transactions collapsed in the past year due to the stamp duty holiday deadline, according to a survey by comparethemarket.com.

Almost a quarter of first-time buyers saw their mortgage lender reduce the loan-to-income offer.

Whilst 65% of prospective property owners believe an extension is beneficial, one in ten are worried it will be disadvantageous according to the research.

Mark Gordon, director of mortgages at comparethemarket.com, said: “Homebuyers with purchases in progress will breathe a sigh of relief if the Chancellor confirms an extension of the stamp duty cut at next week’s Budget.

“Our latest research shows three out of four homeowners, and two-thirds of first-time buyers believe a stamp duty holiday extension will benefit the property market.

“However, there’s a concern that the Chancellor may just be kicking the can down the road, since it is likely that there will be another rush to complete ahead of the new deadline.

“Our research shows that one in five first-time buyer property deals fell through since the pandemic began last year, and this group said the stamp duty deadline was one of the main reasons for the collapse.

“Any jump in house prices will also present a challenge for potential first-time buyers struggling to save for a deposit.

“Some lenders have put stricter mortgage lending criteria in place, with nearly one-quarter seeing their mortgage offer reduced.”


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